Warner Bros Discovery slashes gaming business, closing three studios

Warner Bros Discovery made sweeping cuts to its games division today, closing three studios and ending development on its planned Wonder Woman project. Monolith Productions, Player First Games and WB Games San Diego will be shuttered due to a “disappointing 2024” for WB's gaming business, according to an internal memo from JB Perrette, the company's CEO and president of global streaming and games. Bloomberg broke the news of the restructuring.

Monolith Productions made two well-regarded Lord of the Rings games, Middle-Earth: Shadow of Mordor and Shadow of War. The studio was going to apply its popular Nemesis system from those titles to a Wonder Woman game, which was announced back in 2021.

WB acquired Player First Games last year. The team was responsible for MultiVersus, a platform fighting game that reached 20 million players in its early days before dwindling to a planned shutdown of the online services when its fifth season ends this May.

WB Games San Diego was working on AAA free-to-play gaming. In December, Warner Bros Games also announced that it would lay off employees at WB Games Montreal as well as pulling back on the studio's game Suicide Squad: Kill the Justice League.

According to the internal email from Perrette, WB's gaming efforts will be focused on four of its properties: Harry Potter (including Hogwarts Legacy), Mortal Kombat, the DC universe and Game of Thrones. "We need to make some substantial changes to our portfolio/team structure if we are to commit the necessary resources to get back to a ‘fewer but bigger franchises’ strategy," Perette said.

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