Warner Bros. is shutting down three of its game development studios—Monolith Productions, Player First Games, and WB San Diego—while canceling the highly anticipated Wonder Woman game, according to a report from Bloomberg’s Jason Schreier. The closures mark another major restructuring within the games industry, following widespread layoffs and project cancellations over the past three years.
The company confirmed the shutdowns in a statement to Kotaku, explaining that the decision was driven by a shift in strategic priorities rather than a reflection on the talent at the affected studios.
“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—Harry Potter, Mortal Kombat, DC, and Game of Thrones,” WB said. “After careful consideration, we are closing three of our development studios—Monolith Productions, Player First Games, and Warner Bros. Games San Diego.”
The cancellation of Wonder Woman deals a significant blow to Monolith Productions, which had been working on the game since at least 2021. The studio, best known for the Middle-earth: Shadow of Mordor series, was acquired by Warner Bros. in 2004 and had been a leading force in developing narrative-driven action games. The Shadow of Mordor franchise introduced the innovative Nemesis System, which dynamically altered enemy interactions based on player choices—a mechanic so well-regarded that WB patented it in 2021.
A Changing Strategy for WB Games
The closures come at a time when WB’s gaming division is under increasing pressure to focus on its most profitable franchises. Recent reports suggested Wonder Woman was facing development difficulties after a change in leadership earlier this year. Meanwhile, WB’s broader gaming business has struggled, with Suicide Squad: Kill the Justice League receiving a tepid response and MultiVersus failing to meet internal expectations.
Player First Games, the studio behind MultiVersus, was founded in 2019 and saw early success with the game, which brought together WB’s popular characters in a Super Smash Bros.-style fighter. Despite strong initial engagement, its momentum waned after an extended beta period and a controversial relaunch strategy.
WB San Diego, another casualty of the restructuring, was a relatively new studio focusing on free-to-play and mobile titles. Its closure reflects broader industry challenges as major publishers reassess their investments in live-service games and mobile monetization strategies.
An Industry in Crisis
The shutdowns continue a troubling trend of layoffs and closures across the gaming industry. In 2023, more than 10,000 game developers lost their jobs, with that number increasing to over 14,000 in 2024. While 2025’s total is still being determined, the wave of studio closures suggests that the industry’s struggles are far from over.
For WB, these moves indicate a renewed focus on ensuring profitability, with an emphasis on flagship franchises like Harry Potter, Mortal Kombat, and Game of Thrones. However, the loss of Monolith Productions and its ambitious Wonder Woman project leaves a significant gap in WB’s future lineup.
What’s Next for WB Games?
With these closures, Warner Bros. is banking on its remaining studios to turn things around. The company has signaled its intent to return to growth in 2025, but the question remains: Can WB Games thrive under these shifting priorities?
For now, fans of Wonder Woman and Monolith’s past work are left wondering what could have been.
Sources:
- Schreier, Jason. Bloomberg
- Kotaku
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