Hogwarts Legacy 2 remains a “no brainer” as Netflix tries to buy Warner Bros Games

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Okay, so I’ve been following the news, and it’s wild! Apparently, Netflix is trying to buy Warner Bros., but they’re not the only ones. Word on the street is Paramount is also making a play for Warner Bros. and everything that comes with it – all their movies, shows, and everything else. It’s a big deal!

Warner Bros. has a significant presence in the video game world, and many gamers are familiar with their titles. They’ve recently released both blockbuster games like Hogwarts Legacy and less successful ones, such as Suicide Squad Kill the Justice League.

LEGO Batman: Legacy of the Dark Knight is also being made by Warner Bros., just like the Mortal Kombat games. Both are part of the same large Warner Bros. company.

Is everything related to these games part of the same deal involving Netflix and Paramount? And how will this affect the possibility of a sequel to Hogwarts Legacy or a new Batman/Arkham game being made?

I recently spoke with George Osborn, the creator of the popular Video Games Industry Memo newsletter, to get his take on what Netflix’s deal could mean for Warner Bros. Games and players.

Great news for Harry Potter enthusiasts: a sequel to Hogwarts Legacy seems highly likely to happen. You can find a detailed analysis from Osborn linked below!

Is it true that Warner Bros. is selling its gaming division to Netflix, or potentially Paramount if they acquire the deal instead?

George Osborn confirmed that Warner Bros.’ gaming division is part of the acquisition. Warner Bros. had previously attempted to sell this division last year, but it didn’t happen. As a result, it’s now included in the deal where Netflix or Paramount are acquiring the company.

Do you know how big WB’s games business is at the moment?

It’s hard to get a clear picture of how big Warner Bros.’ gaming division is. While they saw a significant drop in revenue – nearly 50% – between 2023 and 2024, their performance has been uneven. The huge success of Hogwarts Legacy wasn’t enough to offset the poor sales of Suicide Squad: Kill the Justice League, which forced the company to scale back its operations. This included closing the studio behind the Nemesis system, Monolith Studios. Now, Warner Bros. is concentrating its game development efforts on just four major franchises: Harry Potter, Game of Thrones, the DC Universe, and Mortal Kombat.

Do you think this will impact any major games that we already know about?

It’s hard to predict exactly what will happen, but the deal is expected to take at least a year and a half to finalize, assuming there are no unexpected roadblocks from regulators. Companies usually avoid making quick decisions about things like canceling projects, layoffs, or shutting down operations during this time – we saw this with Microsoft’s purchase of Activision Blizzard. So, projects currently in development are likely secure for the time being.

How would you define Netflix’s games business? Seems very mobile-focused to me.

For years, Netflix’s venture into gaming has lacked a clear direction. They began by offering a subscription service for mobile games, but then tried – and ultimately abandoned – building their own game development studios to create a wider range of games.

Netflix now offers a gaming section where subscribers can play around 80 mobile games on their phones, tablets, and TVs, plus a few party games playable directly on television. However, the gaming offerings currently feel a bit disjointed and lack a clear focus.

The company seems to be figuring out its video game strategy as it goes, instead of having a clear plan in place. This is understandably concerning for WB Games.

Will Warner Bros. and Netflix eventually combine their gaming divisions into a single entity, or will they continue to operate as independent businesses?

Netflix has stated that it didn’t factor in any specific financial worth for Warner Bros.’ gaming division when determining the price it paid for the company.

I believe Netflix will acquire WB’s gaming division and then determine its long-term strategy for it.

This could become a key part of Netflix’s plan to quickly establish itself in the gaming world, giving them instant access to the expertise needed to create high-quality games.

I suspect Netflix doesn’t see much benefit in keeping WB Games, suggesting they’re willing to consider options. It seems like they might be open to selling it to the right buyer if the price is good.

If Warner Bros. was developing a sequel to Hogwarts Legacy, do you think Netflix would continue working on it?

As a fan, it’s been interesting to see Warner Bros. really hone in on game projects that seem like sure things. And clearly, that strategy worked with Hogwarts Legacy – it was a huge success! They’re definitely playing it safe, and it paid off big time with that one.

Considering all the projects Netflix is working on, making a sequel to that one is probably the most obvious and easy decision for them.

If Warner Bros. Discovery had Rocksteady Studios developing a DC Comics-based game, do you think that project will still move forward?

Even with Warner Bros. acquiring them, I believe Rocksteady would likely keep working on their DC project. However, I think it faces more potential issues than a new Hogwarts Legacy game.

Although rumors suggest Rocksteady is going back to making single-player games, the poor sales of Suicide Squad mean their future projects will likely be carefully examined.

If they’re creating a game similar to the recent Indiana Jones title – a focused, single-player experience lasting around 15 to 20 hours with high-quality production – it could be successful.

However, if the team is developing a game with a lengthy development process—like the seven to nine years estimated for Suicide Squad—the acquisition could create challenges.

In general, what does the Netflix deal mean for gaming fans?

The potential Netflix deal isn’t a sure thing at the moment. It faces hurdles because of competition issues and could be blocked by Paramount’s attempt to buy the company.

Ultimately, this could result in a leading video game studio being owned by a company that didn’t even consider it valuable during the Warner acquisition process.

Honestly, it’s looking pretty shaky for those studios right now. Unless Netflix decides to stick with them, or someone else comes along and buys them, I’m not sure what’s going to happen. It’s a bit worrying as a gamer who enjoyed their games.

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2025-12-10 15:39