When given the opportunity, the new owner of Warner Bros. did not mention their presence in the gaming industry.
After acquiring Warner Bros., Paramount held its first investor conference but did not mention either company’s gaming divisions. Instead, Paramount executives mainly discussed the merger of certain parts of the two companies, such as HBO Max and Paramount+, and the impact of the acquisition on the entertainment industry. There was a lot of talk about IP, which aligns with Warner Bros. Games‘ decision to refocus on its core franchises. However, the gaming business does not appear to be a priority at this time.
“By uniting our iconic studios, complementary streaming platforms with a global footprint, our cable and linear networks, and our world-class IP, we have the opportunity to help shape the future and build a next-generation media and entertainment company. Ultimately, this combination will enable us to better compete in today’s rapidly evolving entertainment marketplace, where combining storytelling with world-class technological expertise is essential to creating value for consumers, creatives, and shareholders,” said Paramount CEO David Ellison.
In November 2024, Warner Bros. Games announced it would focus on four major franchises: Hogwarts Legacy, Mortal Kombat, Game of Thrones, and the DC Comics universe. This followed a statement by Warner Bros. CEO David Zaslav that the gaming division was underperforming relative to its potential. In June 2025, three studio executives were promoted to reinforce this strategy: Yves Lachance, head of the Montreal studio, was appointed vice president of development for the Harry Potter and Game of Thrones games; Shaun Himmerick, head of NetherRealm Studios (developer of Mortal Kombat), was appointed vice president of DC development; and Steven Flenory, head of the New York studio, was appointed vice president of central technology and services, overseeing game and publishing technology, quality assurance, user research, and customer service.
In its latest financial results, Warner Bros. announced that it is rebuilding its video game pipeline. Revenue for the entire studio segment (which includes games) fell 14% to $3.18 billion compared to the previous year. Paramount and Netflix have been battling for ownership of Warner Bros. since December of last year, when Netflix announced that it would buy the company for $82.7 billion, or $27.75 per share. Last week, however, Netflix backed out of the deal after refusing Paramount‘s increased offer of $31 per share. In a recent interview, Netflix CEO Ted Sarandos said that, as a result of the new agreement between Warner Bros. and Paramount, he is committed to cutting costs by more than $16 billion.
This will certainly lead to layoffs because we don’t see Paramount as being interested in the gaming industry…
Source: Gamesindustry
