Warner Bros. Games Restructures After $384 Million Loss in 2024

The company plans to focus on proven franchises like Harry Potter and Mortal Kombat to recover profitability in 2025.

Warner Bros. Games reported a $384 million impairment charge in 2024 due to underperformance of titles like Suicide Squad: Kill the Justice League and Multiversus.
Revenue for the games division dropped 29% year-over-year during Q4 2024, contributing to a 4% decline in overall company revenue for the year.
The restructuring includes the closure of three internal studios—Monolith Productions, Player First Games, and WB San Diego—and a shift toward leveraging four major franchises: Harry Potter, Game of Thrones, Mortal Kombat, and DC properties.
The company highlighted the success of Hogwarts Legacy as a model for future projects, citing its status as the best-selling game of 2023.
Warner Bros. executives expressed optimism that the restructured strategy will return the games division to profitability in 2025 and position it as a key growth driver.