Warner Bros Discovery is closing three of its video game development studios and canceling projects as part of a restructuring plan aimed at improving profitability.
The company confirmed on Tuesday that Monolith Productions, Warner Bros. Games San Diego, and Player First Games will be shut down, reflecting a shift toward a “less is more” strategy centered on its most successful intellectual properties.
The decision follows financial losses from underperforming titles, leading to a $335 million impairment charge for the gaming division. As part of the restructuring, the company will prioritize core franchises, including Harry Potter, Mortal Kombat, DC Comics (with a focus on Batman), and Game of Thrones.
Development on Monolith’s Wonder Woman game has also been canceled as Warner Bros. refocuses its investments.
The shake-up comes after the recent departure of David Haddad, head of Warner Bros’ gaming division, who left last month after a 12-year tenure.
In an internal memo Warner Bros. executive JB Perrette emphasized the need for structural changes. “The quality of too many of our new releases has really missed the mark. We need to make some substantial changes to our portfolio and team structure if we are to commit the necessary resources to get back to a ‘fewer but bigger franchises’ strategy,” he wrote.
Perrette also highlighted the importance of rebuilding trust with players and investors. “We need to and will do better for our fans first and foremost, and also because regaining that credibility is critical to us securing even more investment in games in the years to come,” 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.”
The restructuring follows recent struggles with game releases that failed to meet expectations. Warner Bros Discovery, joining Microsoft and Sony in cost-cutting measures, aims to streamline its gaming investments to focus on high-performing franchises.
