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Warner Bros. Games Shuts Down Three Studios

vfxexpress February 26, 2025
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Warner Bros. Games Shuts Down Three Studios, Cancels Wonder Woman Game Amid Strategic Shift

February 2025 – Warner Bros. Games has announced the closure of three of its studios—Monolith Productions, Player First Games, and WB Games San Diego—while also canceling the highly anticipated Wonder Woman game. This major restructuring comes as the company shifts focus to fewer but larger franchises, following what executives described as a “disappointing 2024.”

Studios and Projects Affected

The closures impact key studios known for developing some of Warner Bros. Games’ most notable titles:

  • Monolith Productions, the team behind Middle-earth: Shadow of Mordor and Shadow of War, was working on the now-canceled Wonder Woman game.
  • Player First Games, the developer of the recently scrapped fighting game MultiVersus, has also been shut down.
  • WB Games San Diego, which was working on an unannounced AAA free-to-play cross-platform game, has ceased operations.

All ongoing projects from these studios have been canceled immediately, leaving many employees uncertain about their future.

Why Warner Bros. is Making These Cuts

In an internal email obtained by news sources, JB Perrette, CEO and President of Global Streaming & Games for Warner Bros. Discovery, outlined the reasons behind the restructuring. He confirmed that Warner Bros. Games will now prioritize four key franchises:

🔹 Harry Potter / Hogwarts Legacy
🔹 Mortal Kombat
🔹 DC Universe (Primarily Batman but may expand with DCU’s development)
🔹 Game of Thrones

Regarding the cancellation of Wonder Woman, Perrette stated that the game no longer fits within the company’s strategic priorities. Employees impacted by the closures may be reassigned to open roles where possible, though no guarantees have been made.

Warner Bros. Games’ Struggles and Future Strategy

Perrette acknowledged that recent game releases have struggled, citing poor “product-market fit and quality.” Games like Suicide Squad: Kill the Justice League, MultiVersus, and Harry Potter: Quidditch Champions failed to meet expectations, leading to this major shift in company strategy.

In his message to employees, Perrette emphasized the need to “regain credibility and swagger” by delivering higher-quality games that can secure further investment in the gaming division. He stated:

“Getting our swagger back happens one high-quality game release at a time, and our financial credibility gets rebuilt one fiscal quarter at a time—delivering what we said we would deliver, and no big negative surprises.”

This shake-up follows the recent departure of David Haddad, the former President of Warner Bros. Interactive Entertainment, who stepped down in January after over a decade of leadership.

A Bigger Industry Trend?

Warner Bros. Games is the latest in a growing list of major companies making cost-cutting decisions, following similar layoffs and closures at Microsoft, Sony, and Embracer Group. This move signals a growing industry trend toward focusing on fewer, highly profitable franchises rather than taking risks on new or experimental titles.

As the gaming world reacts to this shocking news, VFXEXPRESS will continue to follow the developments and provide updates on the future of Warner Bros. Games and its employees.

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