Warner Bros DISASTER! Earnings Dropped ~50% in Video Game Revenue!

Sweet Baby... Jesus! Warner Bros. Is a Mess—And the Minecraft Movie Can’t Save Them Forever

Those of you following the channel may recall that I was contacted a few months ago by, we'll just say... a former employee of what was once Monolith Productions... yes, that Monolith, the very same studio behind the very popular games Shadow of Mordor and Shadow of War. This source told me things behind-the-scenes at Warner Bros. that were actually far worse than anyone had realized. And now, with Monolith officially being shut down and the earnings results being reported by WB, it’s clear they weren’t exaggerating anything.

While WB is currently basking in the glow of The Minecraft Movie becoming 2025’s top-grossing film, that one win, while enormous, still doesn’t make up for the disaster unfolding across their gaming division. The company’s latest earnings report reveals a 48% drop in games revenue last quarter, but it’s not surprising considering they didn’t release a single game.

Think about that for a second. This is Warner Bros. we’re talking about. A gigantic media titan with full access to some of the biggest IPs on the planet. DC Comics, Harry Potter, Mortal Kombat—brands that should be constantly printing money - But no - instead of actively producing quality game experiences, they’re now shuttering studios, cancelling projects, and fumbling their entire game portfolio.

The writing’s been on the wall ever since they partnered with Sweet Baby Inc. on the disaster known as Suicide Squad: Kill the Justice League. It was a massive flop, and even that's putting it nicely, suffering from a confused identity and a genre shift that nobody was asking for... Save for a handful of ideological zealots that don't even play video games, but I digress. It was initially being introduced to everyone as this sorta big time live-service hit, but no, what we got instead was a game so uninspired with ridiculously bad storytelling that it actually had people longing for Gotham Knights. Post-launch content has been cut, and Rocksteady, once considered an elite game studio, was hit with massive layoffs. They’re now scrambling to refocus on a new Batman game, because... I mean, at this point, what else is left for them?

Meanwhile, WB recently cancelled a Hogwarts Legacy expansion and a Definitive Edition that could’ve brought in easy revenue. They also shut down the Multiversus game, a game that had potential, and quietly killed the Wonder Woman game in development. The result? A major gaming quarter comes and goes with zero releases. Zero. From a company that owns Superman, Batman, Mortal Kombat, and Harry Potter... To name just a few. Nevermind even mentioning Looney Toons and more... The list goes on and on with the properties owned and NOTHING releases. It's actually... pretty telling. Much of it traces back to Diversity, Equity, and Inclusion (DEI), ironically, and how many of their older properties don't align with the modern day ideology of the DEI cult agenda.

Contrast that with their film division, where I'd argue (and I'm probably not alone on this sentiment) that James Gunn is about the only thing holding the DC brand together. There’s finally a shred of vision there, and that’s only because WB got out of his way - so far at least. That’s the model they should follow, because right now, from afar, their entire strategy looks like throwing darts blindfolded into the abyss.

Yes, The Minecraft Movie was a MASSIVE success. Nearly $900 million globally. $300 million on opening weekend alone. It wasn't even as bad as I expected it going into it myself. But that isn’t a sign of recovery, it's a fluke. An aberration. A single hit masking what feels like the absolute chaos happening behind the scenes. You can’t ride the Minecraft high forever. Sure, they'll be sequels, but what about the game divisions under Warner Bros? What happens to them?

For a company with this much IP firepower, this is beyond insane to me. Warner Bros. has no cohesive plan, no consistent vision, and no idea currently on how to even try to capitalize on what they own. The only thing consistent ...is the chaos.

Unless something drastically changes, they’re going to keep wasting golden opportunities, and even more of the studios under their umbrella, are just waiting to be shut down.

~Smash