EA CEO Addresses SAG-AFTRA Strike: Negotiations Ongoing, No Immediate Impact Expected

EA dismisses effect of video game actor's strike, says it won't have "any significant short-term impact"

EA CEO Andrew Wilson has discussed the impact of the SAG-AFTRA actors strike, stating the company doesn't anticipate "any significant short-term impact". Wilson's comments were during a Q&A after its latest earnings call, where an investor questioned the impact of the strike. The CEO replied the company is "working diligently to negotiate at the table" but doesn't expect "near-term disruption to any of the games we have in development" or current live-service games. His full quote is as follows (thanks IGN): "We deeply value our talented actors who are an important part of the work we do to deliver the incredible entertainment experiences that our players enjoy around the world. We're working very closely; this is not an EA-specific situation, this is an industry-specific situation, and we're working diligently to negotiate at the table. The way it works now in terms of our product specifically is that the strike is limited to games commencing production after September 2023, including live service games. So we don't expect any near-term disruption to any of the games we have in development or any of the live services we're currently running. That being said, we're committed to continuing to bargain in good faith and are hopeful that the parties can expediently resolve our issues at the bargaining table. But we're not anticipating any significant short-term impact at EA." Members of the US actors' union SAG-AFTRA voted last week to go on strike due to concerns over the use of AI in video games as part of the Interactive Media Agreement. The union has been in negotiations for over a year and a half with a number of major game companies, including EA, but has so far failed to reach a deal. "We're not going to consent to a contract that allows companies to abuse AI to the detriment of our members," SAG-AFTRA president Fran 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." A collective statement from video game producers responded: "We 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 already found common ground on 24 out of 25 proposals, including historic wage increases and additional safety provisions. Our offer is directly responsive to SAG-AFTRA's concerns and extends meaningful AI protections that include requiring consent and fair compensation to all performers working under the IMA. These terms are among the strongest in the entertainment industry." The terms of the strike from SAG-AFTRA states all "members who want to show solidarity with the union can elect voluntarily not to work". As such, "while [non-struck games like GTA 6] may not be subject to a strike in the technical sense, their production is also subject to being disrupted by members who don't want to work without the protection of AI terms and who don't want to undermine solidarity with the union," said SAG-AFTRA's chief contracts officer Ray Rodriguez. However, it seems Wilson is confident EA's games won't be disrupted in this way. The UK equivalent to SAG-AFTRA, Equity, has stated it stands "in solidarity" with the US union, but won't authorise its own strike.

Electronic Arts SEO in Talks with SAG-AFTRA to Reach Deal

SAG-AFTRA has participated in many strikes, from striking for the rights of those working in Hollywood to those working in the TV industry. This time is no different, and SAG-AFTRA is now striking for those in the games industry. Since 25 July 2024, SAG-AFTRA has been on strike, where all projects with actors in them that have been in development for less than a year will no longer have access to the actors. This will continue until an agreement has been reached regarding the use of AI. SAG-AFTRA's union members are on strike again after more than a year and a half of negotiations. While they don't deny that progress has been made, several video game companies continue to fight off the union. Specifically, the use of Artificial Intelligence in their video games and having actors protected against AI being shaped after them or even replaced entirely by Artificial Intelligence. While most major video game companies aren't considering even utilizing AI like this, some companies out there are beginning to test the waters using AI in any capacity. While they are actively striking now, it's unlikely that the video game industry will see the effects of the ongoing strike for a while, as it wasn't evident for a while with the Hollywood strike. However, people can expect to see more delays going forward if video game companies aren't willing to meet SAG-AFTRA's demands. The Hollywood strike that SAG-AFTRA coordinated took place for a whopping 118 days, and it's looking like the video game industry is desperately trying to avoid that happening again. Electronic Arts CEO Andrew Wilson responded to questions during a presentation where they reported their results for the fiscal year's first quarter. In response to the questions, Andrew Wilson assured people that the SAG-AFTRA strike would not have any impact on their operations in the short term. He also mentioned that he is in negotiations with them. "We are committed to continuing to negotiate in good faith and hope that the parties can quickly resolve our issues at the negotiating table. But we do not anticipate any significant short-term impact on EA." In addition to this statement, Wilson added, "This is not an EA-specific situation; it's an industry-specific situation, and we are working diligently to negotiate at the table." Some of EA's pre-existing contracts are exempt from the SAG-AFTRA strike, such as Take Two's Grand Theft Auto VI contract. This is because the game was in development before December 2023, meaning the game's development can continue on without facing punishment.

Electronic Arts CEO says he is negotiating with SAG-AFTRA to reach a deal

Last year's Hollywood strikes reminded us of the importance of defending the interests of screenwriters, actors and, in short, all workers in the film and television industry. For 118 days they paralysed practically the entire American film industry, and we will still feel the consequences in the coming years, due to delays in the production of films and series. Now it is the turn of the actors in the video game industry to defend themselves, and since 25 July SAG-AFTRA has been on a strike, where all projects with actors that have been in development for less than a year will be deprived of them until an agreement is reached, which revolves around the use of AI. However, it seems that video game companies are not planning to drag out the strike as long as the major film and TV production companies did. Electronic Arts CEO Andrew Wilson responded to a question during the presentation of the first quarter results of fiscal year 2025, in which he assured that the strike will not have an impact on their operations in the short term, and that they are moving forward with negotiations directly: "Let me first say that we deeply value our talent and players, who are an important part of the work we do to deliver the incredible entertainment experiences enjoyed by our players around the world (...) This is not an EA-specific situation, it's an industry-specific situation, and we are working diligently to negotiate at the table." "We are committed to continuing to negotiate in good faith and hope that the parties can quickly resolve our issues at the negotiating table. But we do not anticipate any significant short-term impact on EA." Moreover, there are also exceptions to the strike, such as Take-Two's Grand Theft Auto VI contract, which will not see its development affected either.

EA CEO On SAG-AFTRA Strike: 'We Don't Expect Any Near-Term Disruption' - Electronic Arts (NASDAQ:EA)

He emphasizes the company's commitment to negotiating AI protections. Electronic Arts Inc. EA CEO Andrew Wilson remains confident that the video game company will feel minimal short-term impact from the recent SAG-AFTRA strike. What Happened: According to IGN, during EA's recent earnings call, Wilson addressed investor concerns regarding the strike's potential effects. "We deeply value our talented actors who are an important part of the work we do to deliver the incredible entertainment experiences that our players enjoy around the world. We're working very closely; this is not an EA-specific situation, this is an industry-specific situation, and we're working diligently to negotiate at the table," Wilson stated. See Also: Electronic Arts Q1 Earnings Highlights: College Football, Madden, Soccer Video Games 'Building Momentum For FY25 And Beyond' "The way it works now in terms of our product specifically is that the strike is limited to games commencing production after September 2023, including live service games. So we don't expect any near-term disruption to any of the games we have in development or any of the live services we're currently running," the CEO added. "That being said, we're committed to continuing to bargain in good faith and are hopeful that the parties can expediently resolve our issues at the bargaining table. But we're not anticipating any significant short-term impact at EA." Why It Matters: Actors wish to secure better protections against gaming companies' usage of artificial intelligence (AI). And EA has a robust portfolio of live service games. The company's $1.26 billion in net bookings for the quarter are fueled by titles like Madden NFL 24, FC Mobile, and FC Online. Upcoming releases such as Madden NFL 25, EA Sports FC 25, and NHL 25, alongside The Sims 4 and College Football 25, are unaffected, according to the company. EA's sole single-player offering, Dragon Age: The Veilguard, remains on track. The company's focus on long-term development cycles means many of its games slated for future release were greenlit well before the September 2023 cutoff, insulating them from immediate disruption. Yet, Wilson's remarks don't address the potential long-term implications of the strike. If the walkout persists, projects initiated post-September 2023 could face delays, potentially disrupting EA's plans for 2026 and beyond. The absence of SAG-AFTRA voice actors could slow down development on future titles, creating a ripple effect that might become evident in the coming years. SAG-AFTRA initiated the video game actor strike on July 26, following eighteen months of unsuccessful negotiations primarily centered around AI protections. Read Next: SAG-AFTRA Calls Video Game Strike Over AI Concerns Image credits: Sergei Elagin on Shutterstock. Market News and Data brought to you by Benzinga APIs