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- Warner Bros’ gaming revenue nosedived by 41% this quarter year-on-year.
- This was primarily due to Suicide Squad performing poorly compared to Hogwarts Legacy’s solid results last quarter.
- Following recent losses, the publisher may sell off part of its gaming division to recoup losses.
Suicide Squad’s failures need no introduction. While the gaming community has not been very accepting of Rocksteady’s major live service release, Warner Bros hasn’t done the game any favors either.
After holding it responsible for $200 million in losses last quarter, the publisher has once again used Suicide Squad as the main reason behind its lower-than-expected gaming revenue.
Why it matters: Suicide Squad was in the works for multiple years. It was also created by the same team that pioneered the Batman Arkham series, leading to high expectations from both the fans and Warner Bros.
According to Warner Bros, gaming revenue declined 41% year-on-year during the last quarter.
The publisher outlined that Suicide Squad’s failure was compared to Hogwarts Legacy, which was performing incredibly during the same time last year. Since this release finished as 2023’s best-selling title, it would have been difficult for any game to measure up.
However, Suicide Squad performed so poorly that it has pulled the gaming division’s results lower than anticipated. What’s interesting here is that the losses may be indicative of a larger problem at Warner Bros Discovery.
The entire company lost nearly $10 billion last quarter, with neither of its most important divisions being profitable compared to 2023. Both the TV and film divisions saw losses, though this may change soon with big films like Superman: Legacy and The Batman Part 2 lined up for the future.
Nonetheless, this report shows why it was recently said that Warner Bros considered selling off part of its gaming division. Going by these results, this may become a reality very soon.
As for Suicide Squad, the game received its latest update last month. This update did little to regain players, continuing the trend of disappointment from Rocksteady.
Perhaps the studio will now consider different options, like subscriptions and free trials, to bring back players. One such move was recently taken when the game was made free with Prime Gaming.
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[News Reporter]
Avinash is currently pursuing a Business degree in Australia. For more than three years, he has been working as a gaming journalist, utilizing his writing skills and love for gaming to report on the latest updates in the industry. Avinash loves to play action games like Devil May Cry and has also been mentioned on highly regarded websites, such as IGN, GamesRadar, GameRant, Dualshockers, CBR, and Gamespot.
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