Warner Bros. Reports 48 Percent Fall in Revenue From Games in Latest Quarterly Earnings

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As a gamer, I’ve noticed that my recent gaming sessions with Warner Bros.’s live-service game, “Suicide Squad: Kill the Justice League,” haven’t been as financially successful as they once were. In their latest financial report, Warner Bros. shared that their gaming revenue took a significant hit, dropping about 48%. This decline was observed over a three-month period ending on March 31, 2025.

Unfortunately, the company hasn’t given us a detailed breakdown of its quarterly revenues yet, as reported by GamesIndustry.biz. However, they have hinted that the underperformance of “Suicide Squad: Kill the Justice League” could be a key factor contributing to this revenue drop.

Despite Rocksteady’s live-service game falling short, the company is thriving with other titles like Mortal Kombat 1 and 2023’s open-world title Hogwarts Legacy bringing in substantial income. Additionally, a film project under Warner Bros., titled A Minecraft Movie, has significantly contributed to their revenue, earning approximately $900 million at the global box office.

Specifically in the gaming sector, Warner Bros.’ Studios have generated approximately $2.3 billion in earnings – marking a 16% drop compared to the previous year. On the whole, the company reported total revenues of around $9 billion, representing a 9% decrease from the same period last year.

It’s important to mention that earlier this year, Warner Bros. made the decision to shut down three of its game development studios: Monolith Productions, Player First Games, and WB Games San Diego. The closure of Monolith, known for creating Middle-earth: Shadow of Mordor and its sequel Shadow of War, also led to the cancellation of a project in development based on Wonder Woman.

In making this announcement, the studio acknowledged that this decision is another challenging one given Monolith’s rich legacy of creating extraordinary gaming experiences for enthusiastic fans. We hold the dedication of the three teams in high regard and express our gratitude to each employee for their invaluable contributions. Although today may be tough, we remain committed to resuming production of exceptional games for our loyal followers, with studios that are second to none. Our aim is to regain profitability and growth for our gaming business by 2025 and beyond.

Previously, WB Games announced in March that they aim to concentrate their resources and funds on well-established intellectual properties (IP) and games from renowned studios. They consider their game division as a key advantage that harmonizes well with the numerous IP that Warner Bros. owns and licenses. The company intends to prioritize some of its most popular franchises, such as Mortal Kombat, Game of Thrones, Harry Potter, and DC Comics.

In line with our earlier statement, the year 2024 proved to be a letdown for our gaming sector. We’ve recently unveiled a restructuring strategy aimed at channeling our resources and finances towards established intellectual properties (IP) and games from highly accomplished studios. To clarify, we are strategically concentrating our gaming business on four flagship franchises that have accumulated over a billion dollars in consumer sales: Harry Potter, Game of Thrones, Mortal Kombat, and DC – with a special emphasis on iconic characters such as Batman within the DC universe.

Currently, whispers are circulating that Warner Bros. Games could potentially debut a secret title from a fresh intellectual property (IP) later in 2022.

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2025-05-12 17:47