Overview

• Warner Bros reported a 48% year-on-year decline in Q1 2025 games revenue, citing no new releases and the poor performance of Suicide Squad: Kill the Justice League.
• The $200 million loss from Suicide Squad led to significant impairments and a 66% reduction in gaming content expenses for the quarter.
• Three internal studios—Monolith Productions, Player First Games, and Warner Bros San Diego—were closed as part of a broader restructuring plan.
• The company is now focusing on four proven franchises: Harry Potter, Game of Thrones, Mortal Kombat, and DC/Batman, which have historically driven strong sales.
• Legacy titles like Hogwarts Legacy and Mortal Kombat 1 continue to generate revenue, providing some financial stability during the transition.