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Warner Bros. Gaming Financial Reports "Disappointing" 2024, Revenue Continues to Fall
Warner Bros has released its recent financial report, where it discusses having a disappointing 2024 in the gaming division.
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Warner Bros. has released its financial summary for the final quarter of 2024, as well as an overview of the year as whole. While most of it does focus on its other subsidiaries, such as television and film, it does discuss the earnings of the gaming division.
For many, it doesn't come as a surprise to find that Warner Bros.'s Gaming division did not have a good financial year at all, and revenue was down overall. According to the report, the game division's revenue had decreased by 29%, which isn't too surprising considering that the company didn't have any major releases compared to when Hogwarts Legacy and Mortal Kombat 1 were released in the prior year quarter.
Aside from the company's revenue, it has released some devastating news as of late, where it was announced that three of its studios were going to be closed. These studios are Monolith Productions, Player First Games, and WB San Diego. Thus far, the reception to this announcement has not been taken well, as these studios had incredibly talented teams that produced some great games over the years, including F.E.A.R. and Middle-earth: Shadow of Mordor, for example. A lot of the fan irritation comes from the fact that these companies were never given the opportunity to make further brilliant games like the Middle-earth titles and instead felt that they were being "sat on." Along with the news of the studio closures came the news that the Wonder Woman game that was in development would no longer be released.
The two major Warner Bros. games that were released in the last year both did not perform to expectations. So much so that both Suicide Squad: Kill the Justice League and MultiVersus are both closing down as a result of this before the games had even been in general release for a year. Moreover, MultiVersus was technically in a bizarre beta-early Access limbo phase for a long period of its lifespan and spent even less time fully released to the gaming market.
In the report, it's also mentioned in the Q4 2024 highlights that Games content expense had decreased 20% ex-FX, which was driven by lower revenues, with it being partially offset by additional impairments. In total, it came to $50 million for the quarter, and $384 million for the year.
Warner Bros. has been having an incredibly tough time with its gaming division as of late, and it'll need a really magnificent game to help the company pull through. There is the possibility of more potential Batman games, as James Gunn recently mentioned that he has been in talks with Rocksteady and NetherRealm to develop further DC games. However, it has not been stated what these games could be.
