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Warner Bros. Discovery reported a significant 41% drop in its gaming revenue, primarily attributed to the poor performance of Suicide Squad: Kill the Justice League.
The company’s latest quarterly earnings report highlighted this decline, which contributed to an overall 4% decrease in studio revenue across various sectors, including gaming, television, and cinema.
Suicide Squad: Kill the Justice League, developed by Rocksteady Studios, has been a financial disappointment for Warner Bros., resulting in a $200 million loss.
Despite being set within the popular Arkham universe, the game failed to meet expectations, a stark contrast to last year’s success with Hogwarts Legacy, which sold over 24 million copies.
The game’s troubled development process, characterized by a toxic work culture and shifting creative direction, contributed to multiple delays and a disappointing reception. Following a poorly received showcase at PlayStation’s State of Play in February 2023, anticipation for the game dwindled, leading to low player engagement upon release.
In the latest earnings call, Warner Bros. Discovery executives, including CEO David Zaslav and President of Global Streaming and Games JB Perrette, acknowledged the “uneven performance” of their gaming sector.
Perrette emphasized the importance of expanding into the free-to-play market, citing it as a strategy to stabilize the gaming business, which has become increasingly hit-driven. This focus on free-to-play games was underscored by the Warner Bros. Games acquisition of Player First Games, the developer of MultiVersus, last month.
Looking forward, Warner Bros. has pinned hopes on its upcoming Wonder Woman game, developed by Monolith Productions. Unlike Suicide Squad, this project is confirmed to be a traditional, non-live-service title, signaling a potential shift in strategy for the company.
In other Warner Bros. news, the company has recently announced a new Batman VR game in collaboration with Iron Man VR developer Camouflaj and Oculus Studios.
