After Suicide Squad's $200 million flop and a massacre of studios, Warner Bros acknowledges it has "no releases" out, it's spending 66% less on game content, and the Hogwarts Legacy boom is wearing off

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The dip in revenue is understandable, given the lack of new games

A screenshot of a bunch of DC villains during one of the best games like Borderlands, Suicide Squad: Kill the Justice League.
(Image credit: Rocksteady Studios)

Warner Bros. Games has been going through a massive rough patch lately, with three of its studios – including Middle-earth: Shadow of Mordor and open-world Wonder Woman game developer Monolith Productions – all recently shut down. Now, in a new financial report, it's revealed that its revenue and spending is down compared to this time last year, which isn't a shock when it has "no releases" to speak of.

Spotted by PC Gamer, in Warner Bros. Discovery's results for the first quarter of the 2025 fiscal year (which cover the three months ending on March 31), the company notes that games revenue has "decreased 48% ex-FX" (excluding foreign currency exchange rate fluctuations). This, it says, is "due to the prior year release of Suicide Squad: Kill the Justice League compared to no releases in the current year quarter, as well as higher carryover from Hogwarts Legacy and Mortal Kombat 1 in the prior year."

Suicide Squad: Kill the Justice League King Shar

(Image credit: Warner Bros.)

Warner Bros. Discovery also points to Suicide Squad when discussing its decreased "games content expense" compared to the same quarter last year, which is down by "66% ex-FX, primarily driven by the prior year quarter impairment related to Suicide Squad: Kill the Justice League and lower games revenue in the current quarter."

This is telling of what an impact Suicide Squad had on the company's finances last year. It's worth noting that in a financial context, "impairment" is most likely referring to sudden large drop in an asset's value, a situation which requires companies to assess the difference between the value of something they'd previously accounted for versus its actual, current market value (thanks, Investopedia).

Basically, it sounds like Warner Bros. is referring to the fact that it lost a lot of money last year because of Suicide Squad not doing as well as expected, which it conversely isn't having to spend this year. In a way, that's a win, but obviously with the recent closures of Monolith Productions, MultiVersus developer Player First Games, and the mobile-focused WB San Diego, it doesn't seem like things are looking up for the company just yet.

Experts say Monolith's patented Nemesis System doesn't have to die with its Lord of the Rings games: "You can see some similar design language in the Mercenary system in Assassin's Creed Odyssey.

Catherine Lewis
Catherine Lewis
Deputy News Editor

I'm GamesRadar+'s Deputy News Editor, working alongside the rest of the news team to deliver cool gaming stories that we love. After spending more hours than I can count filling The University of Sheffield's student newspaper with Pokemon and indie game content, and picking up a degree in Journalism Studies, I started my career at GAMINGbible where I worked as a journalist for over a year and a half. I then became TechRadar Gaming's news writer, where I sourced stories and wrote about all sorts of intriguing topics. In my spare time, you're sure to find me on my Nintendo Switch or PS5 playing through story-driven RPGs like Xenoblade Chronicles and Persona 5 Royal, nuzlocking old Pokemon games, or going for a Victory Royale in Fortnite.

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