In a significant move signifying a strategic change of direction, Warner Bros Games has announced the cancellation of a planned Wonder Woman game and the closure of three prominent development studios. This decision marks a pivotal moment for the Warner Bros Discovery division as it aims to realign its resources and focus on its key franchises.
On Tuesday, the Warner Bros Discovery division confirmed to Deadline the closure of three development studios: Monolith Productions, Player First Games, and Warner Bros Games San Diego. This decision comes as part of a broader strategy to concentrate investments on developing top-tier games for franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones.
Monolith Productions, known for its storied history of creating epic gaming experiences, had been working on the now-canceled Wonder Woman game. Despite the desire to offer fans a high-quality experience featuring the iconic character, the project no longer aligns with the company's strategic priorities.
Warner Bros Games described these moves as a strategic shift rather than a reflection on the talent within the affected teams. The company expressed deep appreciation for the passion and contributions of all employees involved, acknowledging the difficulty of the decision to close Monolith Productions given its legacy of delivering exceptional fan experiences.
The gaming unit has faced challenges following the release of the top-selling title Hogwarts Legacy in 2023. In a related development, David Haddad stepped down from his role as president after 12 years. The company aims to return to profitability and growth in 2025 and beyond by focusing on high-quality game production through its world-class studios.
Developing properties in-house is an expensive and time-consuming process, a challenge that both Warner Bros Games and newer gaming entrants like Netflix face. Many media companies have opted to license their franchises to third-party gaming specialists. In its November earnings report, Warner Bros Discovery revealed a $100 million impairment charge due to underperforming releases like MultiVersus. CEO David Zaslav emphasized the need for more consistent performance during an earnings call with Wall Street analysts.
Despite these challenges, Zaslav mentioned last year that there is significant interest from other parties in leveraging the company’s intellectual property. Warner Bros Discovery remains open to exploring such opportunities.
As the company prepares to report its fourth-quarter earnings on Thursday, the gaming industry's eyes are on Warner Bros Games as it navigates this transitional period.
Bloomberg initially reported the closures of the game studios.
