Warner Bros Discovery is set to close three of its video game development studios in an effort to increase profits for its gaming division, as the market continues to recover at a sluggish pace, a company spokesperson revealed on Tuesday.
Player First Games, WB Games San Diego, and Monolith Productions are set to close down. This also means that work on Monolith’s Wonder Woman game will come to a stop.
The spokesperson stated, “Our goal was to offer players and fans an amazing experience with this iconic character, but regrettably, that’s no longer achievable within our strategic focus.”
The decision to shut down the studios reflects the ongoing difficulties in the video game sector, with gamers choosing to spend less on new releases and sticking to established titles as inflation affects their budgets. Just last month, the company announced that David Haddad, who had been leading the interactive entertainment unit for 12 years, would be departing.
Warner Bros is following in the footsteps of other giants like Microsoft’s Xbox and Sony, who both closed offices last year to trim their budgets.
The media giant plans to reorganize its development studios and investments to focus on key franchises such as Harry Potter, Mortal Kombat, DC, and Game of Thrones. This strategy mirrors CEO David Zaslav’s comments from November about emphasizing four “really strong” games.
Last year, the company’s major gamble on Suicide Squad: Kill the Justice League didn’t pan out as hoped, with disappointing sales and bad reviews resulting in game updates being halted in January.
