Summary
It’s no secret thatWarner Bros.' games division has seen better days. After launchingSuicide Squad: Kill the Justice Leagueto mixed reviews,it was reported that the company took a $200 million loss on it. The live-service gameended unceremoniously with its final update in early Januaryas layoffscontinued to impact its developer, Rocksteady.
Roughly a month later,Monolith’s Wonder Woman game was canceled, and the developer was also shutdown. Not only was Monolith shuttered, butWB San Diego and Player First Games, who were in charge of MultiVersus, were also closed.
Now, a new financial report from Warner Bros. paints a grim picture of its games department, with much of the blame falling on Suicide Squad’s failure.
Things Are Not Looking Good For Warner Bros.
As first shared by GamesRadar, revenue in the company’s games division is down 48 percent for Q1 2025, with the company highlighting the release of Suicide Squad, plus “no releases” in this current quarter.
Not only was revenue down as a whole, but Warner Bros. also saw a decrease in spending when it comes to expenses for game development. Per the report, games content expenses decreased by 66 percent, “primarily driven by the prior year quarter impairment related to Suicide Squad: Kill the Justice League and lower games revenue in the current quarter.”
The above is largely just business speak for the massive write-off that Kill the Justice League forced WB to take on its financial statements. In other words, because Suicide Squad flopped, the company hasn’t spent money on its division.
Ouch.
With so much shuffling, it’s unclear what WB’s next move will be. Back in March,it was reported that Hogwarts Legacy DLC was canceled due to the financial situation. Rocksteadywas hiring for a new third-person action game, though that feels a ways off. Either way, the finances aren’t pretty, and it doesn’t look like any relief is coming soon.
