Kirkland, Washington – In a recent blow to the animation, vfx, and video game industries, Warner Bros. Discovery has made a sudden announcement of the closure of three of its video game development studios. This news comes on the heels of other recent studio closures in the entertainment sector, including Technicolor and Montreal’s On Animation Studios.
The three studios being shuttered by Warner Bros. Games are Monolith Productions, Player First Games, and Warner Bros. Games San Diego. The exact number of employees to be laid off has not been disclosed, but it is expected to be in the hundreds. This decision comes as part of a larger restructuring effort to refocus resources on a ‘fewer but bigger franchises’ strategy, according to JB Perrette, WBD’s CEO and president of global streaming and games.
One of the studios affected by the closure is Monolith Productions, based in Kirkland, Washington. Known for popular titles like Middle-earth: Shadow of Mordor and F.E.A.R., the studio was in the process of developing a Wonder Woman video game, which has now been canceled. Player First Games, based in Los Angeles and acquired by Warner Bros. just last year, developed the free-to-play platform fighter game Multiversus, which performed poorly leading to a significant impairment charge for the company.
Warner Bros. Games San Diego, founded in 2019, was also among the studios affected by the recent announcement. The closure of these studios is part of a larger trend within WB Games, with layoffs reported at WB Games Montreal just a few months ago. Despite these closures, Warner Bros. still retains ownership of at least nine video game studios.
As Warner Bros. prepares to report its fourth-quarter earnings, industry analysts will be looking for more details on the company’s future video game strategy. The abrupt closure of these studios underscores the challenges faced by the industry in maintaining profitability and relevance in an increasingly competitive market.