Warner Bros. says the botched launch of Suicide Squad: Kill the Justice League is already one of the key reasons behind a 48% collapse in video game revenue during Q1 of the fiscal year.

Following the blockbuster success of Hogwarts Legacy in 2023, Warner Bros. was riding high in the gaming space. But 2024 has brought the company back to Earth – with a sharp downturn in revenue and a need to assign blame. And executives aren’t holding back: Suicide Squad: Kill the Justice League has emerged as a primary culprit.

Financial fallout tied directly to Suicide Squad

Warner Bros. Discovery recently published its Q1 2025 earnings report, highlighting a massive drop in gaming revenue: “Video game revenues declined by 48%, ex-FX, due to the release last year of Suicide Squad: Kill the Justice League, compared to the absence of new launches this quarter, as well as carryover effects from Hogwarts Legacy and Mortal Kombat 1,” the company reported.

While part of the downturn is attributed to the lack of new titles, Warner’s own report again points fingers at Rocksteady’s troubled game: “Game content expenses dropped by 66% ex-FX, primarily due to the impairment recorded last quarter for Suicide Squad: Kill the Justice League and reduced gaming revenue this quarter.”

The industry had already witnessed the commercial implosion of Suicide Squad, a live service title that failed to maintain player interest. The post-launch content dried up quickly, and Rocksteady suffered rounds of layoffs not long after the campaign wrapped. More than a year has passed since release, yet the fallout still looms large in Warner’s financials.

Rocksteady returns to solo Batman games

Despite the setback, Rocksteady is wasting no time in rebuilding. According to Bloomberg, the studio is now refocusing its efforts on single-player Batman titles – the genre that earned it acclaim with the Arkham series. Their aim is to recapture the magic that once made them one of the industry’s most respected names.

Source: 3djuegos