WB Video games has had a little bit of a tough time lately. That is as per a finance report that unveiled a cliff-sharp drop in gaming income within the first quarter of 2025. Whereas the report would not have its personal section purely for gaming, it does go into the numbers pulled in by videogames in its highlights abstract.
The report states that “Video games income decreased 48% [excluding foreign currencies] because of the prior yr launch of Suicide Squad: Kill the Justice League in comparison with no releases within the present yr quarter, in addition to greater carryover from Hogwarts Legacy and Mortal Kombat 1 within the prior yr.”
Which all checks out. Suicide Squad: Kill the Justice League really misplaced Warner Bros $200 million, and that was again in June 2024. It is laborious to get a precise timeline, however given the sport wrapped up its last correct replace in January of this yr, it is protected to imagine it is misplaced a contact more money.
Now, in equity to Rocksteady—and the report itself—any profitable sport will see a drop in income the quarter after, for the easy incontrovertible fact that video games take a very long time to make and hits are uncommon. Hogwarts Legacy bought gangbusters, with over 22 million copies flooding money straight into Warner Bros’ pocket. You possibly can make some very respectable video games after that and nonetheless see a drop in income.
The true company mic-drop occurs as WB explains its decrease bills—what it is spending—on gaming content material, which dropped 66% “primarily pushed by the prior yr quarter impairment associated to Suicide Squad: Kill the Justice League and decrease video games income within the present quarter”.
Oof. Having your sport title straight referred to as out as being associated to a quarter-year impairment appears like probably the most savage takedown you’d get in a enterprise earnings report.
Particularly since that drop in bills is probably going associated to a sweep of closures that noticed Monolith, Participant First Video games, and WB San Diego shuttered—alongside a Surprise Girl sport. That is all conjecture, positive—however once you say you are spending 66% much less cash on video games after you closed a bunch of studios, then say that is due to an impairment “associated” to a poorly-performing sport? It is conjecture with meat on the bone, a minimum of.
It is fully scrubbed-clean, anesthetised, unoffensive language that nonetheless suggests a depressing perspective in the direction of Suicide Squad: Kill the Justice League’s market flop. I really feel like I am a noble in a extremely political fantasy drama dropping my glass of wine in shock, as a result of some lord instructed the truthful girl’s etiquette was passing unusual. The scandal!
It has been a equally depressing time to work within the video games trade, and I personally pin this failure on the management who determined to make this sport quite than the builders pressured to make it, nevertheless it’s no marvel its finale resulted in layoffs and the top of WB video games stepping down.
