Warner Bros. Games is closing three studios—Monolith Productions, Player First Games, and WB Games San Diego—and canceling the upcoming Wonder Woman game, according to a report by Bloomberg's Jason Schreier. This strategic shift, confirmed by WB Games in a statement to Kotaku, focuses development on key franchises: 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 realignment of resources. While acknowledging Monolith's significant contributions and the Wonder Woman game's potential, WB Games cited strategic priorities as the reason for its cancellation. The company expressed gratitude for the teams' dedication and reaffirmed its commitment to delivering high-quality games and returning to profitability by 2025.

This news follows earlier reports of challenges within WB Games, including the Wonder Woman game's troubled development, the lukewarm reception of Suicide Squad: Kill the Justice League, the closure of MultiVersus, and layoffs at Rocksteady. The departure of long-time games head David Haddad and rumors of a potential sale further underscore the division's restructuring.

The cancellation represents a setback for WB Games' DC universe gaming efforts, especially considering James Gunn and Peter Safran's recent announcement that the first DCU video game is still a couple of years away.

The closure impacts three studios with impressive histories. Monolith Productions, founded in 1994 and acquired by WB in 2004, is known for the Middle-earth: Shadow of Mordor series and its innovative Nemesis system. Player First Games, established in 2019, developed MultiVersus, a critically acclaimed title that, despite initial success, didn't meet expectations. WB Games San Diego, also founded in 2019, focused on mobile, free-to-play games.

These closures reflect a broader trend in the games industry. The past three years have seen a significant increase in layoffs, project cancellations, and studio closures. While precise figures for 2025 are less readily available, the pattern of industry consolidation continues.