Warner Bros Discovery has announced the closure of three of its gaming development studios, a move that also spells the end for the much-anticipated Wonder Woman game. The studio axing affects Monolith, which has spent the last three years developing the Wonder Woman project. The decision comes in the wake of disappointing performances and sales in the gaming sector, with Warner Bros shifting its focus towards its core franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones.
The closure of these studios includes not only Monolith but also Player First Games, known for MultiVersus, and Warner Bros. Games San Diego. The gaming giant hopes this strategic pivot will boost profitability amid a challenging market. Last year saw significant upheaval in the industry, marked by delayed games, studio closures, and widespread layoffs. Sales have struggled as gamers increasingly opt for long-standing online games such as Fortnite or annual franchises like Call of Duty and EA Sports FC.
Warner Bros had high expectations for its recent release, Suicide Squad: Kill the Justice League. Despite these hopes, the game received lukewarm reviews from both fans and critics. Consequently, Warner Bros is realigning its efforts to focus on its more established and successful franchises.
The shutdown of Player First Games means an end to updates for MultiVersus, which concluded in January after experiencing weak sales and poor reviews. The game will now only be playable offline "for the foreseeable future," further underscoring the challenges faced by the studio.
The gaming industry continues to grapple with the lingering effects of the pandemic, which has seen a decline in consumer spending on new games. Additionally, a controversy over the use of artificial intelligence in production has posed further hurdles for major video game makers, including Warner Bros.
Adding to Warner Bros' challenges is the departure of David Haddad, chief of the gaming unit, who left last month after a 12-year tenure. His exit comes at a time when Warner Bros is undergoing significant restructuring to adapt to market demands.
"Our hope was to give players and fans the highest quality experience possible for the iconic character, and unfortunately this is no longer possible within our strategic priorities." – A spokesperson from Warner Bros.