Warner Games sees sharp drop in revenue and may sell gaming division

Home to major entertainment properties such as Mortal Kombat, DC Universe e Harry PotterWarner Bros. is not doing too well in the video game business. According to a new financial report, the WB Games is looking into the possibility of selling at least part of its gaming division.

Warner Bros Discovery announced last Wednesday (07), that its gaming revenue in Q2 2024 fell 41% year-over-year. Apparently, all of the company’s main segments, including Cinema, TV and Video Games, saw a reduction in revenue compared to the second quarter of 2023.

Hogwarts Legacy was a tremendous success for WB Games last year.Fonte:  WB Games

“Gaming revenue has fallen 41%, mainly due to the poor performance of Suicide Squad: Kill the Justice League this year, compared to the strong performance of Hogwarts Legacy in 2023,” the company said in the report.

According to the May 2024 financial results, Warner Bros Discovery CEO David Zaslav said that the difference between the performance of Suicide Squad and that of Hogwarts Legacy last year resulted in “a $200 million impact on EBIDTA [lucro antes de juros, impostos, depreciação e amortização] during the first quarter”. In short: a huge loss!

Warner Bros Discovery CEO explores possibility of selling gaming vertical

In the document, Zaslav also states that Warner Bros. Discovery is studying the possibility of licensing the company’s intellectual properties so that other studios that are not part of the company can produce their games. The company also does not rule out dismantling and selling part of the games division, which includes properties such as Mortal Kombat.

“One of the reasons why Hogwarts Legacy was so successful and was the number one game last year, was that you were going to Hogwartsyou got into the game and you got to become part of that world,” the CEO explained. “That, at the end of the day, I think is a big part of where this industry is going.”

“We have 11 studios here, and we have a lot of IPs. And there is also a lot of interest among others in coming to take advantage of some of these properties for games, which we are looking at,” the executive concluded in the report.

Warner Bros Discovery is considering selling its gaming division to other studios to work on its properties.Fonte:  WB Games

This isn’t the first time Warner Bros. Games has been a potential sale candidate. In 2020, it was reported that Microsoft was interested in buying the gaming division to put the likes of Mortal Kombat, Suicide Squad and other games under its umbrella.

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