Vertical integration in industries like film and gaming occurs when a company controls multiple stages of production, such as a studio that controls production, distribution, and theaters. Horizontal integration in gaming allows developers to work on multiple games at once. The pros of vertical integration are increased credibility, differentiation, and avoiding shut out from suppliers, while the cons are linking to unprofitable businesses and reduced flexibility. Horizontal integration pros are lower costs, more market power, and shared resources, while the cons are increased costs, workload, and responsibilities.