In the world of capitalism, monopolies are detrimental to fair competition and consumer choice. Despite the self-regulating nature of capitalist markets, monopolies often emerge and require intervention from the state to prevent their negative effects. Disney, a massive media conglomerate, is now seeking to expand its influence and become a dominant force in the gaming industry, potentially through the acquisition of Electronic Arts (EA). However, such a move would have negative consequences for both players and EA employees.
Disney already possesses an overwhelming amount of intellectual property (IP), including classic animated movies, as well as properties from Fox and Marvel, such as Alien, The Simpsons, and the Marvel Cinematic Universe (MCU). Currently, a diverse range of studios develop games based on these IPs, providing players with a regular mix of unique gaming experiences. If EA becomes the sole studio responsible for developing all of Disney’s games, this diversity will be severely limited.
The development time for triple-A video games continues to increase. For instance, Rockstar Games took only two years to release GTA Vice City after GTA San Andreas, but it took five years between GTA 4 and 5. Now, it has been a decade since GTA 5’s release, and there is still no official information about GTA 6. It is simply unsustainable for a single company to undertake projects that require such extensive development periods.
Spending ten years on a single project is an incredibly long time for any creative endeavor. While game development occurs in stages, with additional developers joining as the project progresses, even a commitment of five years is longer than the average time it takes to make a movie. If all of Disney’s IP is exclusively developed by one studio, players will have limited access to new games.
EA was previously the sole company responsible for creating Star Wars games. However, due to controversies surrounding predatory monetization, Disney wisely decided to allow other studios to develop Star Wars titles. If Disney reverts to relying solely on EA, it will undoubtedly impact the quality of other projects.
Acquisitions often result in layoffs, leaving developers unemployed. When industry giants acquire smaller studios, they often transform them into support studios. For example, Toys For Bob, the developers of Crash 4, are now primarily creating skins for Call of Duty. This decision is driven by financial gain for the parent company. If Disney acquires EA, we can expect the sports games, shooters, and other interesting titles from EA’s studios to be replaced by games developed by a Disney-appointed committee.
Furthermore, acquisitions frequently lead to job cuts as companies seek to streamline operations and maximize profitability. Will Disney require EA’s HR or marketing teams? It is likely that redundancies will occur to expedite the profitability of the acquisition.
2023 has been a devastating year for workers in the video game industry, with thousands of staff being laid off, lawsuits filed against companies for wrongful termination, and game cancellations. Consolidating companies further through acquisitions, such as Disney acquiring EA, would only exacerbate these issues.
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Source: DOTESPORTS
