Warner Bros. Discovery has embarked on a significant restructuring of its video game operations, aiming to enhance profitability and focus on blockbuster franchises. Three prominent studios are being closed, marking a shift in strategy for the entertainment giant. The decision comes as part of an effort to streamline resources and concentrate on titles that promise greater commercial success.

The affected studios include Monolith Productions from Kirkland, Washington, Player First Games based in Los Angeles, and Warner Bros. Games San Diego. These closures signal a strategic pivot towards major intellectual properties like Harry Potter, Mortal Kombat, Game of Thrones, and DC Comics, with a particular emphasis on Batman. According to JB Perrette, the head of games and streaming at Warner Bros., this move is necessary to improve the quality of their releases and allocate resources more effectively. He noted that recent games have not met expected standards, necessitating substantial changes in portfolio and team structure.

The closure of these studios underscores the challenges faced by Warner Bros. Games in recent years. A spokesperson emphasized that the decision was not a reflection of the talent within these teams but rather a strategic realignment. Earlier reports highlighted issues such as indecision and lack of clear direction under previous leadership, contributing to a weak lineup of games. Despite this, the company remains committed to delivering high-quality experiences centered around its most successful franchises. This strategic shift aims to foster innovation and excellence, ensuring that future projects resonate strongly with players and critics alike.