Warner Bros. Revenue Drop Nearly by Half in Last Quarter Due to Lack of New Video Games
Warner Bros. Games saw a huge drop in revenue, down 48%, for the last quarter, from January 1 to March 31, 2025. This is mostly due to the lack of new game releases. The publisher of popular titles like Batman and Mortal Kombat is still benefiting from the success of Hogwarts Legacy. This game, which was originally released for PS5, Xbox Series X/S, and PC, is being re-released on the Switch 2 with new features.
However, Warner Bros. is also dealing with the failure of Suicide Squad: Kill the Justice League and the cancellation of other projects, including MultiVersus.
The Role of Hogwarts Legacy and Mortal Kombat 1 in Warner’s Revenue
Most of Warner Bros. Games’ earnings came from Hogwarts Legacy, which was first launched in February 2023 and later adapted to PS4, Xbox One, and Switch. Another big source of income has been Mortal Kombat 1, which was released in September 2023 for PC, PS5, Xbox Series X/S, and Switch. Both games have been featured in seasonal sales across digital and physical stores.
In late February, Warner Bros. Games closed three studios. The most well-known studio is Monolith Productions, creators of F.E.A.R., Condemned, and the Middle-earth series. They were also working on the cancelled Wonder Woman game. The other studios shut down were Player First Games, makers of MultiVersus, and Warner Bros. San Diego, which was reportedly working on a racing game with Warner’s intellectual properties.
In February 2024, Warner Bros. launched one of its most awaited titles, Suicide Squad: Kill the Justice League, from the creators of the Batman: Arkham series. Unfortunately, the game was a financial and critical failure for Warner and Rocksteady. The game stopped receiving new content in January 2025, and Rocksteady went through a reorganization.
Warner is reportedly canceling additional content for Hogwarts Legacy and focusing on a Hogwarts Legacy 2, which is being developed by Avalanche Software. The company is also working on a new Batman game with Rocksteady, though neither game has been officially announced yet.
