Skydance has finalized the merger of Paramount's and Warner Bros.' game studios into a single unit, now named Paramount Games Studio. This new division will be responsible for developing titles based on Skydance's extensive intellectual property portfolio, which includes franchises such as Avatar: The Last Airbender, South Park, Mortal Kombat, Game of Thrones, and Star Trek, alongside the considerable library of DC Comics properties. Tony Driscoll, Skydance's president of games and experiences, will lead the new division. Driscoll has previously emphasized the importance of video games as a central element of entertainment, aligning them with film, television, and direct-to-consumer efforts.
Gordon, in a staff memo obtained by Variety, stated that games and experiences are key growth engines for the company, alongside traditional media. He outlined a strategy to build engagement and fandom across both physical and digital realms, aiming to connect with consumers wherever they consume media. The exact future plans for Skydance's gaming division and the potential impact of layoffs remain unclear.
The newly formed Paramount Games Studio will incorporate established Warner Bros. Interactive Entertainment developers, including Avalanche Software, known for Hogwarts Legacy; NetherRealm Studios, the creators of Mortal Kombat; Rocksteady Studios, developers of the Batman: Arkham series; and TT Games, responsible for numerous Lego titles. Additionally, former Activision CEO Bobby Kotick has joined Skydance's board of directors. Skydance is also producing a Call of Duty movie, slated for release in 2028.