Warner Bros. Discovery has reported a staggering 48% drop in games revenue for Q1 2025, with the company confirming no new game releases during the quarter.

The drop was also driven by the disappointing performance of last year’s Suicide Squad: Kill the Justice League, which failed to meet commercial expectations and has now reportedly had its final content update.

The games division, part of Warner Bros.’ broader Studios segment, saw a sharp year-on-year revenue dip, driven by weak carryover from 2024 and a stalled release pipeline.

The broader Studios segment also suffered, with total revenues falling 16% to US$2.3 billion (A$3.5 billion). Across the business, Warner Bros. pulled in US$9 billion (A$13.7 billion) for the quarter – down 9% year-on-year.

The disappointing performance in games comes after major internal upheaval. Earlier this year, Warner Bros. shuttered three of its development studios – Monolith Productions, Player First Games, and WB San Diego – effectively cancelling several high-profile projects, including a planned Wonder Woman title.

Despite the turmoil, some legacy titles like Hogwarts Legacy and Mortal Kombat 1 continue to generate revenue, though not at the levels seen last year.

While the gaming division faltered, Warner Bros.’ film business delivered a bright spot. The new Minecraft Movie has emerged as the top-grossing film of 2025, raking in nearly US$900 million (A$1.37 billion) worldwide.

Looking ahead, Warner Bros. is yet to announce any major new games but industry insiders suggest the company may be exploring licensing deals or potential sell-offs of its gaming IPs, with a new focus on proven franchises like Harry Potter, Game of Thrones, DC, and Mortal Kombat.