Warner Bros. Cancels Unannounced Kart Racer and Shuts Down Three Studios

The Mario Kart-inspired game, codenamed 'Moonlight,' was scrapped as Warner Bros. pivots to focus on major franchises following significant financial losses.

Warner Bros. Games San Diego was developing a Mario Kart-like racing game, codenamed 'Moonlight,' featuring characters from its IP catalog, but the project was never officially announced or launched.
The game underwent several iterations, starting as a free-to-play multiplatform title and later shifting to a paid-for PC-only release, but faced internal challenges including high staff turnover and lack of clear direction.
In February 2025, Warner Bros. shut down three of its game studios, including WB San Diego, after its gaming division reported $300 million in losses in 2024.
The company has canceled smaller, riskier projects like 'Moonlight' and an in-development Wonder Woman game to focus on established franchises such as Harry Potter, Game of Thrones, and Batman.
Warner Bros. CEO David Zaslav previously identified the gaming division as underperforming, prompting this strategic shift to stabilize its operations and prioritize proven commercial successes.