In a recent financial update, Warner Bros revealed that the company’s gaming branch suffered immeasurably in Q1 2025. The gaming arm of WB saw a revenue decrease of a whopping 48% year-on-year. In a report published online, most of the decreasing revenue was attributed to the company simply not releasing any major games.
In a way, it was a blessing, as the team at Warner Bros Games revealed that game content expense and marketing costs also decreased in Q1 2025, again because nobody is working on anything major and there are no games to promote.
Good and Bad
Warner Bros’ recent financial update reveals that game revenue plummeted 48% year-on-year, and that’s mostly because last year, Suicide Squad: Kill the Justice League hit the market. It might have bombed, but it was something.
It was also stated that ‘higher carryover’ from Mortal Kombat 1 and Hogwarts Legacy contributed nicely to layover value in Q1 2024. All that income has long since dwindled.
‘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.’
(Thanks to GI.biz for the spot)
In February, Warner Bros Games shocked the wider community when it shut down several studios, including Monolith, the creator of the Shadow of Mordor series. This also led to the collapse of the Wonder Woman game.
The leadership team at WBG also decided to can the Hogwarts Legacy Definitive Edition in March 2025. That decision came mere months after the company decided to focus more specifically on Harry Potter, Mortal Kombat, DC, and Game of Thrones titles.
Are you surprised that Warner Bros Games has leaked revenue so far in 2025? Let me know on the Insider Gaming forum.
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Grant has been gaming for 30+ years and in the industry for 10+. You'll probably find him playing a post-apocalyptic game or an extraction shooter somewhere.
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