Warner Bros. shuts down three game studios, cancels Wonder Woman project
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Warner Bros. has announced the closure of three of its game development studios and the cancellation of the much-anticipated Wonder Woman video game.
This decision comes as the company looks to restructure its gaming division following $300 million (approx. Rs. 2,627 crore) in losses in 2024.
The affected studios include Monolith Productions, known for Middle-Earth: Shadow of War, Player First Games, the developer behind MultiVersus, and Warner Bros. Games San Diego, a support studio. The move is part of Warner Bros. Games' strategy to refocus on its biggest and most successful franchises, including Harry Potter, Batman, Mortal Kombat, and Game of Thrones.
According to an internal memo obtained by Bloomberg, JB Perrette, Warner Bros.' Head of Games and Streaming, acknowledged that many of the company's recent releases had failed to meet expectations.
"The quality of too many of our new releases has really missed the mark. We need to make substantial changes to our portfolio and team structure if we want to dedicate the necessary resources to our 'fewer but bigger franchises' strategy," Perrette wrote.
In a statement to Kotaku, Warner Bros. confirmed the closures and emphasised that these decisions were not a reflection on the talent within the affected teams.
"We have had to make difficult choices to restructure our development studios and align investments with our key franchises - Harry Potter, Mortal Kombat, DC, and Game of Thrones. As a result, we are closing Monolith Productions, Player First Games, and Warner Bros. Games San Diego," the company said.
The much-hyped Wonder Woman game, which had been in development at Monolith Productions, has officially been cancelled. Warner Bros. cited strategic shifts as the reason for scrapping the project, despite having already invested over $100 million (approx. Rs. 875 crore) into its development.
"We had hoped to deliver a high-quality experience worthy of Wonder Woman, but unfortunately, that is no longer possible given our new strategic direction. We greatly admire Monolith’s legacy of creating epic gaming experiences and deeply appreciate the contributions of our teams," Warner Bros. stated.
The decision to shut down the studios comes after a series of high-profile failures in 2024.
The biggest blow came from Rocksteady Studios’ live-service title, Suicide Squad: Kill the Justice League, which struggled to attract players and ultimately failed to generate sustainable revenue. The game, which launched in January 2024, had its content updates halted after just a year.
Meanwhile, MultiVersus, the crossover fighting game developed by Player First Games, contributed to an additional $100 million in losses. Despite a strong launch, the free-to-play game failed to maintain player interest, prompting Warner Bros. to shut down development. The game's final season was announced last month, and it will go offline permanently on May 30.
With several projects now cancelled or failing to perform, Warner Bros. is left with a thin release schedule for the coming years. While major projects like a sequel to Hogwarts Legacy and new DC Universe games are in development, they are still years away from release.
Rocksteady Studios, known for the acclaimed Batman: Arkham series, is rumored to be shifting its focus back to single-player, story-driven games, with a new Batman game possibly in the works.
Meanwhile, DC Studios head James Gunn recently confirmed that a DC Universe video game is still several years away, adding to the uncertainty surrounding Warner Bros. Games' future.