WB Games has had a bit of a rough time recently. That's as per a that unveiled a cliff-sharp drop in gaming revenue in the first quarter of 2025. While the report doesn't have its own segment purely for gaming, it does go into the numbers pulled in by videogames in its highlights summary.
The report states that "Games revenue decreased 48% [excluding foreign currencies] due to the prior year release of Suicide Squad: Kill the Justice League compared to no releases in the current year quarter, as well as higher carryover from Hogwarts Legacy
and Mortal Kombat 1 in the prior year."
Now, in fairness to Rocksteady—and the report itself—any successful game will see a drop in revenue the quarter after, for the simple [[link]] fact that games take a long time to make and hits are rare. Hogwarts Legacy sold gangbusters, with . You could make some very decent games after that and still see a drop in revenue.
The real corporate mic-drop happens as WB explains its [[link]] lower expenses—what it's spending—on gaming content, which dropped 66% "primarily driven by the prior year quarter impairment related to Suicide Squad: Kill the Justice League and lower games revenue in the current quarter".
Especially since that drop in expenses is that saw Monolith, Player First Games, and WB San Diego shuttered—alongside a Wonder Woman game. This is all conjecture, sure—but when you say you're spending 66% less money on games after you closed a bunch of studios, then say that's because of an impairment "related" to a poorly-performing game? It's conjecture with meat on the bone, at least.