Paramount and Skydance Unveil New AAA Game Studio: What’s Next for Mortal Kombat and Batman?

Gaming has proven itself to be a highly profitable and rapidly expanding sector, which explains why major entertainment conglomerates are increasingly investing in it. Paramount Skydance’s latest move marks a significant stride in this direction.

Under the leadership of David Ellison, the company has announced a sweeping restructuring of its video‑game division. Central to this overhaul is the creation of a new development studio that will bring together the two existing teams within the organization. The studio’s first high‑budget title is slated to be unveiled in the near future.

Following its merger with Skydance, Paramount acquired two dedicated game studios: Skydance Interactive and Skydance New Media. Both teams will now operate under the umbrella of Paramount Games Studio, the newly formed development arm of the U.S. company.

The studio will be headed by Tony Driscoll, who previously served as the organization’s strategy and corporate development director. The executive team also features two seasoned entertainment veterans: Shawn Kittelsen, senior vice president, creative director, and producer, and Dan Prigg, former head of Skydance Interactive.

Following the recent news about Paramount Skydance’s game development, there seems to be some clarity on the future of the projects under their wing. According to reports, Marvel 1943: Rise of Hydra and the unnamed Star Wars game helmed by Amy Henning are still in production.

Moreover, Paramount Game Studios is gearing up to debut its first AAA title. As per the latest updates, the company will unveil its upcoming high-profile project during the Summer Game Fest 2026 ceremony, set to commence in the afternoon of June 5.

Tony Driscoll, in a statement, expressed Paramount’s intent to create exceptional games catering to all types of players, from casual to high-budget, and to build memorable experiences based on their Paramount franchises and original worlds that engage fans and foster long-term growth.

In connection with this integration, the executive team at Skydance New Media is set for significant changes. Amy Hennig, currently a co-president, will transition to become the creative director of Paramount Games Studio, while Julian Beak, who worked alongside Hennig, has left the company.

Paramount Games Studio’s debut arrives at a pivotal juncture for the entertainment sector. Following Warner Bros. Discovery’s decision to sell, Netflix was initially eyed as the prospective buyer, but the streaming titan stepped aside, opening the door for David Ellison’s company to take the helm.

Paramount Skydance is poised to become a major force in the gaming arena, as a potential takeover of Warner Bros. Discovery would grant it access to the entire Warner Bros. Games library, encompassing iconic franchises such as Mortal Kombat, Harry Potter, and Batman.

Although the deal remains unfinalized, the announcement disclosed that Tony Driscoll, head of Paramount Games Studio, will spearhead the integration strategy should the acquisition of Warner Bros. Discovery and its gaming division materialize.

“Launching this division marks a significant evolution in how we view video games—not merely as an extension of our business, but as a cornerstone of our content strategy, alongside film, television, and streaming,” Driscoll remarked.

But tell us, do you think iconic franchises like Mortal Kombat and others are at risk?

Are you excited about the launch of this new studio?

Let us know your thoughts in the comments.