Video Game Industry’s $100 Billion Profit in Jeopardy Amidst AI-Driven Strike

Video game performers fear Artificial intelligence (AI) threatens their work prospects, causing a strike and associated work stoppage Thursday after talks broke down between Hollywood studios and performers over AI protections.

Second Strike for Video Game Voice Actors and Motion Capture Performers

This is the second strike for video game voice actors and motion capture performers. The powerful Screen Actors Guild-American Federation of Television and Radio Artists (SAG-AFTRA) heavily controls these industries. The strike will take effect at midnight Friday.

Ongoing Talks Between Studios and the Union

The talks between studios and the union have been ongoing for two years. On the studio side, Activision, Warner Bros., and Walt Disney Co. divisions have been negotiating with SAG-AFTRA on a new interactive media agreement.

Impact of AI on Negotiations

Conditions have changed considerably over the past years of negotiations with the advent and progression of AI, which has the power to singlehandedly transform the entertainment industry.

Progress on Wages and Job Safety

Union representatives report progress on wages and job safety in the video game contract. However, studios have yet to meet union demands for regulating generative AI.

Potential Transformation by AI

AI could transform the industry landscape for video game performers, as studios could train AI to make performers redundant by replicating their voices or having the generative AI create a digital image of the performer without compensating the performer or requiring their consent.

SAG-AFTRA’s Stance on AI

SAG-AFTRA President Fran Drescher stated that the union would not agree to a contract allowing companies to “abuse AI.” Drescher said, “Enough is enough. When these companies get serious about offering an agreement our members can live–and work–with, we will be here, ready to negotiate.“

The Financial Scale of the Video Game Industry

The video game industry is one of the biggest internationally, bringing in $100 billion in profit annually.

Studios’ Position on AI Protections

While the game studios recognize that some protections from AI are warranted, union representatives have said that the studios will not “provide an equal level of protection from the dangers of AI for all our members.” They are particularly noting the resistance to protections from movement performers.

Scope of the Video Game Agreement

The video game agreement includes performers, including off-camera voiceovers and on-camera stunt performers, motion capture performers, stunt coordinators, singers, dancers, puppeteers, and background performers.

Separate Contract for Indie and Lower-Budget Video Games

In February, SAG-AFTRA separated the contract into an individual contract for indie and lower-budget video games rather than lumping those projects in with the blockbuster projects.

Representation and Negotiation Parties

SAG-AFTRA represents 160,000 actors. On the other side of the negotiations are video game companies Activision, Blindlight, Disney Character Voices, Electronic Arts, Productions Inc., Formosa Interactive, Insomniac Games, Take 2 Productions, VoiceWorks Productions, and WB Games.

Producers’ Response to the Strike

A spokesperson for the video game producers said they are “disappointed the union has chosen to walk away when we are so close to a deal, and we remain prepared to resume negotiations. We have found common ground on 24 of 25 proposals, including historic wage increases and additional safety provisions.”

Game Studios’ Offer on AI Protections

The game studios also claim that they offer “meaningful AI protections that require consent and fair compensation to all performers working under the memorandum of agreement. These terms are among the strongest in the entertainment industry.”