Warner Bros. Games has reported a staggering 48% year-over-year drop in revenue, sending shockwaves through the industry and raising serious questions about the publisher’s current strategy—or lack thereof. The cause? A near-complete absence of new game releases in early 2025 and the lingering fallout from Suicide Squad: Kill the Justice League, a live-service misfire that’s quickly becoming a textbook case in what not to do.

A Quarter Without a Hit

Warner Bros. Discovery’s recent earnings call laid it all bare. The gaming division, which had been riding high off the back of Hogwarts Legacy and Mortal Kombat 1 just a year prior, saw its revenue crater by nearly half in Q1 2025. The culprit wasn’t hard to pinpoint: not a single new title hit shelves during the quarter.

In an industry that thrives on momentum and timely releases, this kind of drought is almost unheard of. While most major publishers maintain a cadence of steady drops, whether full-scale titles or seasonal content updates, Warner Bros. Games essentially sat this quarter out.

And they’re paying the price.

The Suicide Squad Fallout

The damage wasn’t limited to just a dry release calendar. Suicide Squad: Kill the Justice League, developed by Rocksteady Studios, was supposed to be a crown jewel—a high-profile, multiplayer live-service shooter set in the DC Universe. Instead, it became an albatross around the company’s neck.

Released in February 2024 to lukewarm reviews and an immediate player drop-off, the game struggled to retain an audience despite an aggressive marketing push. Its reliance on always-online mechanics, repetitive mission structures, and out-of-place looter-shooter elements alienated longtime fans of Rocksteady’s Arkham series.

By January 2025, just shy of a year after launch, WB officially pulled the plug on further development. The live-service roadmap, which promised four seasons of post-launch content, was cut short—an extraordinary move that suggests how deep the rot had gone. The studio was forced to absorb a $200 million impairment charge directly tied to the title.

To make matters worse, internal reports suggest Suicide Squad lost over 98% of its player base within a few months of launch—a number that, while not uncommon for struggling live-service games, is especially jarring given its pedigree and budget.

Franchise Fatigue and Future Focus

This abrupt decline marks a sharp contrast to the publisher’s performance in 2023, when Hogwarts Legacy shattered sales records and Mortal Kombat 1 reinvigorated the fighting game space. Yet instead of building on that momentum, Warner Bros. seemingly put the brakes on.

Now, the company is shifting its focus back to what works. According to insider job listings and subtle corporate hints, Rocksteady may be returning to the Batman: Arkham universe—a franchise that has consistently performed well both critically and commercially.

Meanwhile, Warner Bros. is expected to double down on its most bankable IPs, including Hogwarts Legacy (a sequel is all but confirmed) and Mortal Kombat, which continues to enjoy a loyal competitive player base and strong DLC sales.

What This Means for 2025 and Beyond

With no major launches in early 2025 and Suicide Squad buried for good, Warner Bros. Games is entering a critical rebuilding phase. If the company wants to reclaim its standing in the AAA space, it needs to do two things fast: return to its core strengths and regain player trust.

The failure of Suicide Squad is more than just a financial misstep—it’s a symptom of a broader trend. Big publishers chasing live-service revenue without a clear gameplay hook or fan alignment are finding themselves in deeper and deeper trouble. For Warner Bros., the lesson is clear: you can’t manufacture long-term engagement—it has to be earned.

As the second half of 2025 approaches, all eyes will be on what Warner Bros. Games announces next. And more importantly, how—and when—they deliver.