Warner Bros. has announced the closure of three of its game development studios, Monolith Productions, Player First Games, and Warner Bros. Games San Diego. Along with the shutdowns, the company confirmed the cancellation of the highly anticipated Wonder Woman video game, which was being developed by Monolith. The closures are part of a company-wide restructuring to prioritize major franchises such as Harry Potter, Mortal Kombat, DC, and Game of Thrones.

“We have had to make some very difficult decisions to structure our development studios and investments around building the best games possible with our key franchises,” Warner Bros. stated. The company said the decision was not a reflection of the affected teams’ talent but rather a change in strategic focus.

Monolith Productions, founded in 1994 and acquired by Warner Bros. in 2004, was best known for its work on Middle-earth: Shadow of Mordor and Shadow of War. The studio’s Nemesis system, patented in 2021, earned acclaim for its innovative approach to enemy interactions within games. Monolith had been developing the Wonder Woman game since its announcement in 2021, but the project faced several development hurdles and never moved beyond the teaser phase. Fans of the DC superhero expressed disappointment, especially given the early buzz surrounding the game’s potential use of the Nemesis system.

Player First Games, established in 2019, was responsible for developing MultiVersus, a crossover fighting game featuring characters from Warner Bros.’ extensive catalog. Despite a successful launch with strong player engagement and positive reviews, the game’s popularity declined over time. Updates were halted, and the game struggled to maintain its initial momentum, ultimately falling short of company expectations.

Warner Bros. Games San Diego, also founded in 2019, specialized in mobile and free-to-play titles. While the studio contributed to expanding Warner Bros.’ presence in the mobile gaming market, shifting market dynamics and changing player preferences led to the decision to close the studio.

The closures occur as the gaming industry continues to face economic challenges, with increasing layoffs and studio shutdowns over the past three years. In 2023, over 10,000 game developers lost their jobs, with the number rising to more than 14,000 in 2024. Developers have been contending with rising production costs and evolving consumer spending habits, making it harder for studios to sustain long-term projects.

Warner Bros. Games has faced its share of setbacks recently. Suicide Squad Kill the Justice League received mixed reviews, and the departure of longtime games head David Haddad added to the company’s challenges. Despite the turbulence, Warner Bros. is determined to revitalize its gaming division and reach profitability in 2025.