NBCUniversal, the media conglomerate behind Minions and streaming service Peacock, is considering a move into the video game business, according to a Reuters report. The exploration comes as the video game industry grapples with mass layoffs, the component crisis, and skyrocketing development costs, alongside increasing monopolization by companies like Microsoft and Embracer.
NBCUniversal's Gaming Ambitions
Reuters reports that NBCUniversal is 'eyeing opportunities' in digital gaming as part of its future growth strategy, following a planned spin-off from Comcast into a separate media business. Gaming is among a 'broad range' of options under consideration, but no specific entry method has been disclosed. Analysts speculate the company could acquire existing game studios, launch internal development, or integrate games into its Peacock streaming service, similar to Netflix.
NBCUniversal owns major assets including Universal theme parks, Peacock, Illumination (Minions, The Super Mario Movie), and Dreamworks (Shrek, How to Train Your Dragon). Valued at nearly $40 billion (£30.2 billion) during its 2011 acquisition by Comcast, it is smaller than EA ($51 billion/£38 billion) and Take-Two Interactive ($46 billion/£34.4 billion).
Past Acquisition Interests
Comcast has previously considered acquiring Activision Blizzard, which was bought by Microsoft for $75.4 billion in 2023, and EA, which is currently being acquired. It also explored investing in Epic Games, the company behind Fortnite. However, it is unclear if incoming NBCUniversal CEO Michael Cavanagh shares similar interest in gaming investments. Reuters also notes that NBCUniversal's film and TV assets could be bought out, with Netflix mentioned as a potential buyer.
Potential Targets and Challenges
The report does not name specific game studios as acquisition targets but highlights Take-Two Interactive as having 'the most valuable trove of intellectual property,' including Grand Theft Auto. However, Take-Two's estimated worth of $46.61 billion (£35 billion) makes it prohibitively expensive for NBCUniversal without borrowing or partnering. Meanwhile, Microsoft is reportedly considering spinning out its Xbox business into a separate subsidiary, though it would remain owned by Microsoft. If that included Activision Blizzard and Bethesda, it would be extremely costly; Microsoft bought ZeniMax Media for $8.1 billion in 2021 and Activision Blizzard for $75.4 billion in 2023, the largest acquisition in gaming history.
Possible Strategies
NBCUniversal could leverage its relationship with Nintendo to license its franchises for games or convince Nintendo to make titles available on Peacock. With the gaming industry's current instability, many publishers and developers may become available for acquisition in the coming months, presenting opportunities for NBCUniversal to expand.
