Rocksteady’s game, which uses a live service model, is having such an impact on Warner Bros. Discovery’s bottom line that even the company’s management highlighted it in its earnings release…
David Zaslav, CEO of Warner Bros. Discovery, said during the company’s financial presentation that the Studios division (which includes Warner Bros. Pictures, DC, Warner Bros. Television Group, New Line Cinema, and their gaming involvement, Warner Bros. Games) reported a year-over-year decline. Last year, the performance of Hogwarts Legacy drove up the financial results, and now the disappointing performance of Suicide Squad: Kill The Justice League has run the division into the ground!
“Warner Bros. Discovery’s great storytelling IP, including Harry Potter, Lord of the Rings, Superman and many other parts of the DC Universe, are largely underutilized. We are working hard to change that. It’s a core value and a core advantage for us. We have the characters and the stories that people around the world love and crave in every language. Unfortunately, the studio’s Q1 financials were overshadowed by the tough [comparisons] in games, following the great performance of Hogwarts Legacy last year and the disappointing release of Suicide Squad in Q1 in our games group,” Zaslav said.
His comments were echoed by Gunnar Wiedenfels, chief financial officer of Warner Bros. Discovery. The difference between the release of the two games resulted in “a $200 million impact to EBIDTA [earnings before interest, taxes, depreciation and amortization] in the first quarter. Back in February, we heard that sales of Suicide Squad: Kill the Justice League had fallen short of Warner Bros. Discovery’s expectations. So management has openly stated that Rocksteady’s game is absolutely not on par with what the studio has been able to do with its Batman: Arkham titles.
So it’s only a matter of time before they announce the game’s cancellation.
Source: VGC
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