Warner Bros. Games Division Revenue Drops 48%

The studio blames the decline on the lack of new releases in Q1 2025.

After losing $384 million for its parent company in 2024, the Games division continues to be a major burden for Warner Bros., with the studio's latest financial report revealing the department's whopping 48% revenue drop in Q1 2025.

Rocksteady

According to the official report, Games revenue fell nearly 50% during the three-month period from January to March 2025, significantly contributing to a 16% year-on-year drop in Warner Bros.'s total Studios division revenue, from $2.821 billion to $2.314 billion. The studio blamed the decline on a lack of new releases in Q1 2025, as well as higher carryover from Hogwarts Legacy and Mortal Kombat 1 in 2024.

To offset the dropping profits, Warner Bros. seems to be reducing funding for its game-related efforts, with game content expenses decreasing by 66%. The report attributed this decrease to "the prior year quarter impairment related to Suicide Squad: Kill the Justice League," which, when translated from corpo-speak to plain English, means the experience of Rocksteady's failed 2024 game – which reportedly cost its developers $200 million only to get abandoned less than a year after its release – has likely led executives to stop pouring vast sums of cash into similar projects.

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Warner Bros. Games Division Revenue Drops 48%

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