The state of Warner Bros. Discovery’s video game division is once again in the balance as the company hopes to license out its big properties.
During the earnings conference call for the second quarter of the 2024-2025 fiscal year (thanks, IGN), CEO David Zaslav said that outside studios could “benefit” from franchises like Harry Potter and DC. “We have 11 studios here and a lot of IP. […] We have to get bigger.”
In the past, WB has licensed its games to third-party developers. But many of these, like Stable as a rock and TT Games (along with Player first more recently) were acquired to continue producing WB titles.
For Jamie Perette, global head of streaming/games at WB, licensing will help balance the video game business. Multiverse is doing well in free-to-play, but acknowledged the “gravity” of full-priced games, which take three or four years (or more) and millions of dollars to make.
In other words, WB is still feeling the pain Suicide Squad: Kill the Justice LeagueBy Rocksteady troubled The live-service shooter has been repeatedly cited as a failure for WB Games, both on its own merits and in relation to The Hogwarts Legacy.
While the 2023 game was a billion dollar hit, Suicide Squad led to a 41 percent drop in gaming revenue. “We went from a record year with Hogwarts School to unfortunately have the opposite side of that spectrum with Squad“, Perrette said.
Earlier this week, it was reported that WB was looking to sell its gaming division entirely. Along with The team continued disappointment, WB-owned NetherRealm recently closed its mobile squad and his telephone game Mortal Kombat: Assault.