Warner Bros Discovery is shutting down three of its video game development studios in a move aimed at boosting profitability for its gaming division amid a sluggish recovery in the market, a spokesperson for the company’s games unit said on Tuesday.
The decision to close the studios reflects wider challenges in the video game industry as gamers cut back on new purchases and instead opt for proven titles amid inflation squeezing discretionary spending budgets.
The media giant will structure its development studios and investments to focus on core franchises such as Harry Potter, Mortal Kombat, DC and Game of Thrones, mirroring CEO David Zaslav’s comments in November about focusing on four “really powerful” games.
Decision to shutter development studios comes as gamers cut back on new purchases and instead opt for proven titles.
The company’s big bet on Suicide Squad: Kill the Justice League last year fell short of expectations, with weak sales and poor reviews leading to the end of game updates in January.
