Warner is still talking about Hogwarts Legacy as it commits to basing its future games on ‘tentpole franchises that have each generated over $1 billion’

In what one might say is a remarkable example of understatement, Warner Bros. Discovery said in a letter to shareholders that 2024 was “a disappointing year” for its games business, which suffered a 53% decrease in revenue compared to 2023. Despite that big hit, Warner has high hopes for 2025 thanks to its recent restructuring, which it says will enable it to “refocus our resources and capital on proven IP and games from proven, world class studios.”

That restructuring, of course, saw the recent closures of WB San Diego, Player First Games, and the legendary Monolith Productions, as well as the cancellation of the Wonder Woman game that was announced in 2021. All of that came in the wake of the spectacular failure of Suicide Squad: Kill the Justice League and the fizzle-out of Multiversus, which was less overtly cataclysmic than Suicide Squad’s bomb but still notable because the game had come out so strongly, before Warner decided for reasons unknown to take it offline for nearly a year and rework it. Between them, the two games ended up losing roughly $300 million.