Warner Bros. Games is closing three studios—Monolith Productions, Player First Games, and WB Games San Diego—and canceling its planned Wonder Woman game, according to a report by Bloomberg's Jason Schreier. This strategic shift, confirmed by WB in a statement to Kotaku, prioritizes development around key franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones.

The statement emphasizes that this decision isn't a reflection on the talent within the affected studios but a necessary restructuring to focus resources. The cancellation of the Wonder Woman game, despite Monolith Productions' storied history and the game's initial promise, reflects this revised strategic direction. WB expressed admiration for the teams' dedication and thanked them for their contributions. The company aims to return to profitability and growth by 2025.

This news follows earlier reports of challenges within WB Games, including the Wonder Woman game's troubled development, layoffs at Rocksteady, the mixed reception of Suicide Squad: Kill the Justice League, the closure of MultiVersus, and the recent departure of long-time games head David Haddad. Rumors of a potential sale of the division have also circulated.

The closure significantly impacts WB's DC universe gaming efforts, particularly considering James Gunn and Peter Safran's recent announcement that the first DCU video game is still a couple of years away.

The industry loses three significant studios. Monolith Productions, founded in 1994 and acquired by WB in 2004, is renowned for its Middle-earth: Shadow of Mordor and Shadow of War games, pioneering the acclaimed Nemesis system. Player First Games, established in 2019, developed MultiVersus, a critically well-received title that, despite initial success, fell short of expectations. WB Games San Diego, also founded in 2019, focused on mobile, free-to-play games.

These closures continue a concerning trend of layoffs, cancellations, and studio closures in the games industry. While precise figures for 2025 are less readily available, the past two years have seen thousands of game developers impacted, with over 10,000 layoffs in 2023 and over 14,000 in 2024.