NBCUniversal, the media giant behind Minions and streaming service Peacock, is exploring a move into the video game business, according to a Reuters report. The company is assessing options for future growth following its planned spin-off from Comcast into a separate media entity. Gaming is among a broad range of possibilities, though no specific entry strategy has been revealed.
Industry Context and Challenges
The video game industry is currently grappling with mass layoffs, a component crisis, and skyrocketing development costs. Consolidation has intensified, with companies like Embracer Group and Microsoft acquiring studios and subsequently shutting them down. NBCUniversal's potential entry could further reshape the landscape.
NBCUniversal owns Universal Pictures, NBC TV network, Universal theme parks, Peacock, and film studios Illumination (Minions, The Super Mario Bros. Movie) and DreamWorks (Shrek, How to Train Your Dragon). Valued at nearly $40 billion (£30.2 billion) at the time of its 2011 acquisition by Comcast, it is smaller than Electronic Arts ($51 billion/£38 billion) and Take-Two Interactive ($46 billion/£34.4 billion), but still a significant player.
Potential Strategies and Past Interest
NBCUniversal could integrate games into Peacock, similar to Netflix, establish internal development studios, or acquire existing game companies. Reuters notes that Comcast previously considered acquiring Activision Blizzard (later bought by Microsoft) and EA (currently being acquired), as well as investing in Epic Games. It remains unclear if incoming NBCUniversal chief Michael Cavanagh shares this interest.
The report also suggests that NBCUniversal's own assets, such as its film and TV studios, could be acquisition targets, with Netflix named as a potential buyer.
Acquisition Targets and Challenges
While no specific game studios are named, Reuters identifies Take-Two Interactive as having the most valuable intellectual property, notably Grand Theft Auto. However, Take-Two is valued at approximately $46.61 billion (£35 billion), a figure likely to rise after the release of GTA 6, making it too expensive for NBCUniversal unless it borrows funds or partners with another entity.
Separately, Microsoft is reportedly considering spinning off its Xbox business into a separate company, though it would remain a subsidiary. Rumors of layoffs and studio closures have fueled speculation that Microsoft might sell Xbox entirely. Such a sale would include Activision Blizzard and Bethesda, but would be extremely costly. Microsoft acquired ZeniMax Media for $8.1 billion (£6.05 billion) in 2021 and Activision Blizzard for $75.4 billion (£56.4 billion) in 2023, the largest acquisition in gaming history.
Potential Nintendo Collaboration
NBCUniversal could leverage its existing relationship with Nintendo, perhaps by licensing its franchises for games or convincing Nintendo to make its titles available on Peacock. However, no concrete plans have been announced.
With the gaming industry in turmoil, NBCUniversal may find numerous publishers and developers available for acquisition in the coming months. The company's next steps remain uncertain, but its potential entry signals further consolidation in the sector.
