Warner Bros Games Revenue Drops 48% in Q1 Due to Lack of New Games

Warner Bros recently reported a major drop in revenue from its gaming division. In the first quarter of 2025, Warner Bros Games saw a 48% decrease in revenue compared to the same period last year. The company admitted that the main reason for this significant loss was simple: they didn’t release any major games.

In their financial update, Warner Bros explained that not releasing any big games in Q1 2025 caused the drop in revenue. Last year, the game Suicide Squad: Kill the Justice League hit the market. Although it didn’t do well, it still brought in money. This year, however, there was nothing comparable.

Warner Bros also noted that “higher carryover” from previous hits like Mortal Kombat 1 and Hogwarts Legacy had helped maintain revenue in Q1 2024. However, that extra income has faded away by now. The company stated:

“Games revenue decreased 48% ex-FX, due to the prior year release of Suicide Squad: Kill the Justice League compared to no releases in the current year quarter, as well as higher carryover from Hogwarts Legacy and Mortal Kombat 1 in the prior year.”

Interestingly, Warner Bros mentioned that since there were no new game releases, their game content expenses and marketing costs were also much lower. In a way, this was a positive outcome since it helped balance out the revenue loss.

Warner Bros Games made headlines earlier this year when it shut down several studios, including Monolith, known for the Shadow of Mordor series. This move also led to the collapse of the planned Wonder Woman game.

In another surprising decision, Warner Bros decided to cancel the Hogwarts Legacy Definitive Edition in March 2025. This move came shortly after the company announced plans to focus more on major franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones.

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