In a staggering financial report for the quarter ending March 31, 2025, Warner Bros announced a shocking 48% plunge in its games revenue. This steep drop has raised eyebrows across the gaming industry, leaving fans and analysts concerned.

The entertainment giant did not disclose specific figures for its games revenue, which falls under its Studios segment. However, they pointed to last year's much-anticipated title, Suicide Squad: Kill the Justice League, which failed to resonate with fans, as a significant factor behind this decline.

Moreover, the absence of new game releases during the quarter further exacerbated the revenue dip, leaving a void in the market.

While the news sounds grim, there are glimmers of hope. Warner Bros highlighted the ongoing success of beloved titles such as Hogwarts Legacy and Mortal Kombat 1, which continue to draw in substantial revenue. Additionally, the recent release of A Minecraft Movie has been a surprising box office hit, raking in nearly $900 million globally and surpassing $550 million within just ten days!

Overall, Warner Bros Studios reported a 16% decrease in total revenues, nosediving to $2.3 billion when compared year-on-year.

For the entirety of Q1 2025, Warner Bros' total revenue reached $9 billion, reflecting a 9% drop compared to the previous year.

Earlier this February, following the tough FY2024 results, Warner Bros announced their restructuring plan, leading to the closure of several key studios like Monolith Productions and Player First Games. The company described 2024 as a "disappointing year" for its gaming segment, prompting a shift in strategy to refocus on established intellectual properties.

Warner Bros aims to streamline its gaming efforts around four major franchises, each of which has generated over $1 billion in consumer sales: Harry Potter, Game of Thrones, Mortal Kombat, and DC—especially its iconic characters like Batman.