Paramount Skydance launches game studio, plans 3 AAA titles

Paramount Skydance is consolidating its gaming operations into a single entity, betting that video games will become a core revenue driver alongside film and television.

Paramount Skydance on June 5 announced the formation of Paramount Games Studio, merging its two existing development outfits — Skydance Interactive and Skydance New Media — into one brand. The new studio will support Paramount's intellectual property with video game releases, starting with a AAA title expected to be revealed at Geoff Keighley's Summer Game Fest 2026 later today.

"Video games are not an extension of our business — they are a core pillar of it, alongside film and TV," Tony Driscoll, head of corporate strategy and development at Paramount and newly appointed president of Paramount Games Studio, said in a statement. "We are committed to creating exceptional games for every type of player, from casual to AAA, and building enduring experiences across our beloved Paramount IP and original worlds."

The restructuring places Dan Prigg, previously head of Skydance Interactive, as executive vice president and head of games. Shawn Kittelson continues as senior vice president of creative. Existing projects from the absorbed studios remain unaffected, including Marvel 1943: Rise of Hydra — a narrative-driven game set in World War II — and an unannounced Star Wars title being developed with Lucasfilm under veteran game director Amy Hennig.

Paramount Skydance's gaming ambitions extend beyond internal restructuring. The company is in the process of acquiring Warner Bros. Discovery and its game slate, which includes major franchises such as Mortal Kombat and Batman. That deal has not yet closed. Chief Executive David Ellison, a known gaming enthusiast, is also helping shepherd a Call of Duty movie adaptation through development.

The push into AAA game development comes as media conglomerates increasingly treat gaming as a direct revenue channel rather than a licensing opportunity. Paramount's move mirrors strategies at Disney and Warner Bros., which have invested heavily in internal game development to capture a larger share of the $200 billion global gaming market. Paramount Games Studio's first original title, set for announcement at Summer Game Fest, will test whether the company can translate its film and television properties into commercially viable interactive experiences.

This article is for informational purposes only and does not constitute investment advice.