Warner Bros. Games Plans AAA Live-Service Title Amid $200 Million Losses

Planck

* Amid backlash from Suicide Squad’s $200 million flop, WB doubles down on live service.
* Restructuring, layoffs, and a pivot toward iconic franchises signify a high-stakes strategy shift.
On July 29, 2025, gaming news outlets reported that Warner Bros. Games Montréal is recruiting an executive producer to lead the development of a new project: an unannounced AAA live-service game. This game will be based on an iconic IP from the Warner Bros. and DC Comics catalog. The job listing emphasizes expertise across the full game development lifecycle, including live operations, confirming the studio's intent to deliver a high-quality game with ongoing content to maintain player engagement.
This move follows Warner Bros. Games’ strategic shift to focus on live-service gaming. The company is making this change despite recent challenges, including the commercial failure of *Suicide Squad: Kill the Justice League* and broader financial setbacks. According to a report from Bloomberg on July 29, *Suicide Squad* lost approximately $200 million. This failure contributed to a 41% year-over-year decline in gaming revenue during the second quarter of 2025.
In response to these struggles, WB Discovery CEO J.B. Perrette outlined a new vision that centers on live-service and mobile games as growth drivers during a Q2 2025 earnings call. He cited volatility in the traditional AAA console market as the reason for the shift. The company intends to leverage its major franchises—such as *Mortal Kombat*, *Harry Potter*, *Game of Thrones*, and DC Comics—to fuel this strategy. Notably, the company has also discussed transforming the successful single-player game *Hogwarts Legacy* into a live-service offering.
This decision comes amid significant restructuring within WB Games, which divided its operations into four franchise-driven divisions and led to extensive layoffs and studio closures. According to industry reports in early 2025, WB Games laid off 99 employees from its Montréal studio and closed other studios, including Monolith Productions and Player First Games.
While speculation continues about which IP the new game will feature, the hiring at WB Games Montréal confirms its commitment to creating a live-service title. The studio plans to use post-launch content to sustain long-term player engagement.
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