Video Game Industry Braces for Minimal Impact from Voice Actors' Strike

Major video game publishers like Electronic Arts and Take-Two are expected to mitigate the impact of the recent voice actors' strike, analysts say. The strike comes as the industry faces declining demand post-pandemic. However, the extensive development cycles and small role of voice actors in projects suggest limited disruption.

Major video game publishers including Electronic Arts and Take-Two are expected to withstand the impact of the recent strike by voice actors and motion-capture artists, thanks to their in-house studios and lengthy development cycles, analysts report.

The strike, beginning last week, is the latest in Hollywood following previous strikes by writers and actors demanding protections against artificial intelligence. The strike comes at a crucial time as the video game industry faces reduced demand after a pandemic-driven boom, with consumers spending less time on games and focusing on major titles.

Unlike the disruptions caused by last year's strikes, the current action is anticipated to have minimal impact since voice actors and motion-capture artists constitute a small part of the game development process and budget. 'When you consider large publishers, they spend three to ten years on major titles. Projects slated for the next several quarters began years ago,' explained Wedbush Securities analyst Nick McKay.

This suggests that Take-Two Interactive Software's highly anticipated 'Grand Theft Auto VI,' set for a fall 2025 release, will likely remain unaffected by the strike led by the SAG-AFTRA union. The minimal budget for voice acting offers little incentive for project delays; once one developer agrees, others may follow, according to analysts.

Despite this, the strike is expected to feature prominently in upcoming earnings reports from companies, noted Joost Van Dreunen, lecturer at NYU's Stern School of Business. He highlighted the strike as symptomatic of broader industry issues, such as widespread layoffs and studio closures. 'If unresolved by early September, the strike could extend through the year and impact the holiday season, posing a greater challenge for publishers,' Van Dreunen concluded.