14 DAY TRIAL // The synergy between movies and games continues to grow. We see more announcements about movies based on games than ever and great games based intellectual property, like Gears of War or Metal Gear Solid, is becoming more sought after as sales and media exposure increase. But a careful observer can also spot another trend: that of big media companies, with a big exposure to the movie market, that are moving into the games industry.
The most recent example of this trend is Paramount's decision to greatly expand and diversify in on-line and games division with the proposed target of creating a niche for the company in the casual and mobile games market first, from which it will then be able to move into more mainstream games production.
Paramount is one of the oldest movie studios in the world, founded in 1912. It is now a subsidiary of Viacom and has launched hits like Beowulf, Transformers or Shreck the Third in 2007.
Sandi Isaacs, who is Paramount's senior vice president of interactive and mobile gaming, stated: "We are entering into deals now where we will be publishing games this year." No names were given, so we really don't know what games are being developed and published by Paramount, but they are talking about a hybrid business model where some games are self-published, while others are co-published with partners. The main markets targeted by the company are the casual games market, with wide target demographics, the mobile games market and the market for handheld devices.
Matt Candler, who is an ex-Activision veteran, with a background at developers Grind Games, Seven Studios and Six Studios, is being brought in as vice president of interactive development to handle the upcoming expansion. Also, Luke Letizia, a former Sega executive, is also becoming executive director of interactive licensing in the new company setup required for the move into the games market.
Viacom, Paramount's parent company, is already having a few games-related assets. It acquired Xfire, the messaging system aimed at gamers, and also owns Harmonix, creators of Rock Band, the video delivery service Gametrailers and the virtual world of Neopets. So it only makes business sense for Paramount to also establish a foothold in the gaming market.
Paramount is not the first movie giant to make such a move. In autumn last year, Warner Brothers launched a similar initiative, by acquiring Traveller's Tales, best known for developing the LEGO Star Wars titles.
Could Paramount and Warner Brothers be the first to make a move that all other major media companies will soon follow? I can think of a time in the future when Activision considers merging with a Paramount that has both movie credentials and the respect of gamers. The move into games seems like a logical one, given the way movies and computer media are becoming more and more intertwined, but there's no assurance that big media companies have what it takes to succeed as game developers and publishers.