Warner Bros Discovery shuts three videogame studios, spokesperson says
Feb 25 (Reuters) - Warner Bros Discovery (WBD.O), opens new tab is shutting down three of its videogame development studios in a move aimed at boosting profitability for its gaming division amid a sluggish recovery in the market, a spokesperson for the company's games unit said on Tuesday.
The studios to be closed are Player First Games, Warner Bros. Games San Diego and Monolith Productions. Development on Monolith's "Wonder Woman" game will also halt, following the shuttering.
"Our hope was to give players and fans the highest quality experience possible for the iconic character, and unfortunately this is no longer possible within our strategic priorities," the spokesperson said.
The decision to close the studios reflects wider challenges in the videogame industry, as gamers cut back on new purchases and instead opt for proven titles amid high inflationary pressures squeezing discretionary spending budgets.
Last month, the company announced the departure of David Haddad, the chief of the gaming unit, after a 12-year tenure.
Warner Bros joins the ranks of other major players such as Microsoft's Xbox and Sony (6758.T), opens new tab that closed offices last year in a bid to reduce costs.
The media giant will structure its development studios and investments to focus on core franchises such as Harry Potter, Mortal Kombat, DC and Game of Thrones, mirroring CEO David Zaslav's comments in November about focusing on four "really powerful" games.
The company's big bet on "Suicide Squad: Kill the Justice League" last year fell short of expectations, with weak sales and poor reviews leading to the end of game updates in January.
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