Warner Bros. has announced the closure of three of its video game studios and the cancellation of the much-anticipated Wonder Woman title, following significant losses of $300 million (approximately Rs. 2,627 crore) within its gaming division for 2024. The media conglomerate is shifting its focus toward its more prominent franchises after facing a series of disappointing releases and ongoing leadership challenges that have resulted in a sparse lineup of games in development. The studios that will be shut down include Monolith Productions, known for Middle-Earth: Shadow of War, Player First Games, the creator of MultiVersus, and the support studio Warner Bros. Games San Diego.
Warner Bros. Announces Studio Closures
This decision, first reported by Bloomberg on Wednesday, underscores Warner Bros. Games’ aim to implement structural changes within its teams and revamp its portfolio in order to prioritize flagship franchises such as Harry Potter, Batman, Mortal Kombat, and Game of Thrones.
In an internal memo shared with staff and obtained by Bloomberg, JB Perrette, head of Warner Bros.’ games and streaming division, remarked, “The quality of too many of our new releases has really missed the mark. We need to make some substantial changes to our portfolio/team structure if we are to commit the necessary resources to get back to a ‘fewer but bigger franchises’ strategy.”
Following the announcement, Warner Bros. confirmed the studio closures and the cancellation of the Wonder Woman game in a statement to Kotaku, emphasizing that the decisions do not reflect the capabilities or efforts of the affected teams.
“We have had to make some very difficult decisions to structure our development studios and investments around building the best games possible with our key franchises – Harry Potter, Mortal Kombat, DC and Game of Thrones. After careful consideration, we are closing three of our development studios – Monolith Productions, Player First Games and Warner Bros. Games San Diego. This is a strategic change in direction and not a reflection of these teams or the talent that consists within them,” Warner Bros. Games articulated in the statement.
It was also confirmed that the development of Monolith’s Wonder Woman video game would cease. The company expressed disappointment, stating, “Our hope was to give players and fans the highest quality experience possible for the iconic character, and unfortunately this is no longer possible within our strategic priorities. This is another tough decision, as we recognize Monolith’s storied history of delivering epic fan experiences through amazing games. We greatly admire the passion of the three teams and thank every employee for their contributions. As difficult as today is, we remain focused on and excited about getting back to producing high-quality games for our passionate fans and developed by our world-class studios and getting our Games business back to profitability and growth in 2025 and beyond.”
Cancellation of Wonder Woman Game
Warner Bros. has faced significant challenges in bringing the Wonder Woman game to fruition, as highlighted in a recent Bloomberg report. The company reportedly invested over $100 million (approximately Rs. 875 crore) into the game being developed by Monolith before it underwent a reboot in 2024. Monolith, a subsidiary of WB Games, has a history of producing acclaimed titles, including Fear, Middle Earth: Shadow of Mordor, and its sequel, Middle Earth: Shadow of War.
Player First Games, which developed the free-to-play fighting game MultiVersus, also faced difficulties, contributing to a $100 million loss for Warner Bros. Games in 2024. Last month, WB Games declared that it would cease development on MultiVersus, with its fifth season set to be the last, and the game scheduled to go offline on May 30.
The financial troubles for Warner Bros. in 2024 were exacerbated by the poor performance of Rocksteady Studios’ high-profile release, Suicide Squad: Kill the Justice League. This live-service title failed to capture the interest of players and halted content updates just one year after its launch on January 30, 2024. The studio is now reportedly shifting its focus to a new Batman game, aiming to return to single-player narrative-driven experiences that initially brought it success.
Currently, Warner Bros. faces a limited release schedule for upcoming games, with numerous cancelled projects and disappointing live-service titles that struggle to maintain steady revenue. Major projects, including a sequel to Hogwarts Legacy and future titles based on DC properties, remain years away from release. At a recent event, DC Studios head James Gunn indicated that a video game set in the DC Universe is still a couple of years off.
