Warner Bros. Discovery has announced the closure of three of its video game development studios: Monolith Productions, Player First Games, and Warner Bros. Games San Diego. This move is part of a broader corporate restructuring aimed at focusing resources on key franchises such as Mortal Kombat, Harry Potter, DC Comics, and Game of Thrones.
Major Closures Shake Up the Industry
Among the studios affected, Monolith Productions was known for its work on the Middle-earth: Shadow of Mordor series and was actively developing a highly anticipated Wonder Woman game. With its closure, the project has reportedly been canceled.
Player First Games, the team behind MultiVersus, also faces shutdown, raising uncertainty about the future of the crossover platform fighter. The game had been pulled from digital storefronts in mid-2023 for redevelopment, with a planned relaunch in 2024. However, given the studio’s closure, its fate is now in question.
Additionally, Warner Bros. Games San Diego, which focused on mobile and live-service titles, has also been shuttered as part of this downsizing effort.
Warner Bros. Shifts Focus to Core IPs
Warner Bros. Discovery CEO JB Perrette cited financial challenges and a disappointing 2024 performance as key reasons for the closures. The company is now pivoting toward high-revenue franchises, consolidating development efforts to ensure more successful titles rather than spreading resources thin across multiple projects.
The decision underscores a shift in Warner Bros. Discovery’s gaming strategy, potentially signaling fewer experimental or niche projects in favor of established blockbuster properties.
Industry Impact and Developer Concerns
These closures mark another wave of layoffs and studio shutdowns in the gaming industry, a trend that has raised concerns about job stability for developers. Employees affected by these closures are now seeking new opportunities, with many studios and developers voicing their support for those impacted.
With Warner Bros. Discovery prioritizing franchise-based gaming, it remains to be seen whether this strategic realignment will strengthen their position in the gaming industry or alienate players who were looking forward to projects like Wonder Woman and MultiVersus‘ return.
