Analysts say major video game publishers such as Electronic Arts and Take-Two are likely to avoid being hit hard by a strike by voice actors and motion-capture artists because of their in-house studios and long game development cycles.
The strike, which began last week, is the latest in Hollywood after unions representing writers and actors took to picket lines last year to demand protections over the use of artificial intelligence.
This comes at a critical time for the video game industry, as demand remains sluggish after a pandemic-induced boom and people are spending less time gaming and sticking to big titles.
But unlike the disruption caused by last year’s strike, the latest action is expected to have little impact, as the workers make up only a small part of the video game development process and budgets.
“When you think about the big publishers, they spend three to 10 years developing their big titles, so if anything is coming out in the next few quarters, it’s going to be something they started developing several years ago,” said Nick Mackay, an analyst at Wedbush Securities.
That means Take-Two Interactive Software’s highly anticipated title “Grand Theft Auto VI,” scheduled for release in fall 2025, is unlikely to be affected by the strike called on Thursday by workers represented by the SAG-AFTRA union.
Analysts say the small budgets required for voice actors give companies little incentive to continue with the projects, and without a unified organization, if one developer agrees, others could follow suit.
Still, Joost van Drunen, a lecturer at New York University’s Stern School of Business, said the strike is likely to feature in corporate earnings reports due in the coming weeks.
He added that the strike was symptomatic of the widespread layoffs and studio closures that have hit the industry.
“If it’s not resolved by early September, it will drag on through the end of the year and into the holiday season,” Van Drunen said. “That will be an even bigger blow to publishers.”
