Media giant Warner Bros Discovery has openly acknowledged the challenges facing its video games division, describing it as “substantially underperforming.” During a recent discussion with investors, CEO David Zaslav highlighted the disparity between the company’s potential and its current performance. While the organization boasts several strong franchises, the overall results have not met expectations.
Challenges and Opportunities
According to reports from VGC, the company has faced a significant financial setback, with losses exceeding 0 million attributed to underperforming titles. The free-to-play brawler, MultiVersus, has been particularly problematic, leading to questions about its viability in a competitive market.
Zaslav addressed shareholders with a candid assessment, stating, “Even in an industry of hits and misses, we must acknowledge that our studios business must deliver more consistently. This applies to our games business, which we recognise is substantially underperforming its potential right now.”
Despite these setbacks, Warner Bros Discovery is not without its successes. The company has identified four key franchises that have proven to be both strong and profitable, each boasting a dedicated global fanbase:
- Hogwarts Legacy
- Mortal Kombat
- Game of Thrones
- DC Universe, particularly Batman
In response to the current challenges, the company is recalibrating its strategy. Zaslav emphasized a renewed focus on these core franchises, stating that development efforts will be concentrated on leveraging the strengths of proven studios to enhance the success ratio of their gaming endeavors.
