A reader is frustrated with the recent closures at Warner Bros. and encourages them to let other people make games based on Batman and Harry Potter.
Warner Bros. Games is better off selling its studios than continuing to develop games in-house. Any objections? If not, then allow me to explain. Warner Bros is currently the only one of the big five film studios to have an internal division dedicated to developing and publishing games. The rest (Disney, Universal, Paramount, and Columbia Pictures) have either tried and failed, prefer to license their properties to third party studios, or just get their corporate sibling to do the heavy lifting for them – as is the case with Columbia, whose parent company is Sony.
Since Warner Bros. Games was established, they’ve released some financially successful games. The Batman: Arkham series under Rocksteady Studios has received critical acclaim and sold more than 30 million copies. Mortal Kombat, which fell under their control in 2009, has sold 83 million copies. Additionally, the Lego video games by TT Games have entertained millions of fans both young and old and, more recently, Hogwarts Legacy broke a 14 year streak by becoming the best-selling game in America, ending the reign of Call Of Duty and Rockstar Games.
However, for every win, there have to be losses too. 2024 was arguably Warner Bros Games’ worst year on record, with the division losing $300 million on games such as Suicide Squad and MultiVersus, neither of which pleased fans. The fact that both games have ended support only serves to highlight how miserably they performed. So when news broke that three of Warner Bros.’ studios were being closed – Monolith, Player First, and WB San Diego – one thought popped into my head. Why does Warner Bros still having a gaming unit in 2025? Considering they have no major releases scheduled for this year or for the nar future, what is going on?
Focus is being placed on key franchises such as Harry Potter, DC (mainly Batman), and Mortal Kombat. But is that really going to be enough to keep WB’s gaming division afloat? Rocksteady is apparently working on another Batman game, but is it part of the Arkhamverse? And considering most of the talent behind the previous entries have left, will the overall quality be diminished?
There’s also no news from TT Games, even though it’s been three years since Lego Star Wars: The Skywalker Saga, and Lego has now forged partnerships with 2K and Epic Games. Then we have Mortal Kombat’s current developer, NetherRealm Studios. Whilst they may still have their creative director, Ed Boon, even after 30 years the mixed reception to the latest entry poses questions as to what’s next.
I could go on, but my point is this. Despite Hogwarts Legacy being an enormous success for Warner Bros. Games their lacklustre releases in 2024 have shown that something needs to change. Focusing on key franchises is a safe option, but even then there’s no way of telling how well new entries may perform.
Considering that a year ago, the company wanted to double down on the much-maligned live service genre their strategy of ‘let’s copy what the market is doing’ has resulted in losses, layoffs, and now studio closures. This is why I believe selling off what’s left of Warner Bros. Games is the right thing to do. Not only can WB net some much needed cash, to keep their parent company financially stable, they can also generate revenue by licensing certain franchises to other studios.
The only game that was even moderately successful for the division last year was Batman: Arkham Shadow, which was licensed by Warner Bros. Games to Oculus Studios. Recently, news broke that it had sold 1 million copies in three months. That might not sound like a lot, but considering it was exclusive to Meta Quest 3 – whereas Rocksteady’s Suicide Squad was multiplatform – those numbers are, to some degree, impressive.
The departure of Warner Bros. Games president David Haddad last month suggests that, internally, the executives calling the shots know something needs to change. But this is a matter which reflects the entire gaming industry. More and more AAA releases, such as Suicide Squad, are failing to generate revenue, lacking in creativity and innovation, and are heavily monetised even though deluxe editions can cost up to £100.
Small wonder more gamers are turning towards smaller developers, because what they lack in manpower they make up for with passion and a noticeable absence of corporate greed breathing down their necks. Warner Bros. Games is better off cutting its losses and closing up shop. Licensing is a more profitable and effective option than internal development.
Disney took this decision nine years ago, even if it meant cutting jobs and closing down studios (ironically, one of them was Hogwarts Legacy developer Avalanche). Unless what’s coming next will be revolutionary and sell 40 million units, Warner Bros. Games will continue to suffer until there are no studios left to cull, no more layoffs to enact, and no gamers around to feel sorry for them. In the meantime, I’m off to play Batman: Arkham Knight.
By reader George W
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