Warner Bros. has made the tough decision to cancel its highly anticipated Wonder Woman game and close down three of its development studios: Monolith Productions, Player First Games, and WB San Diego. This news was first reported by Bloomberg's Jason Schreier on Bluesky, followed by a comprehensive article on Bloomberg. Warner Bros. later confirmed the closures to Kotaku, stating:
We have had to make some very difficult decisions to structure our development studios and investments around building the best games possible with our key franchises -– Harry Potter, Mortal Kombat, DC and Game of Thrones. After careful consideration, we are closing three of our development studios – Monolith Productions, Player First Games and Warner Bros. Games San Diego. This is a strategic change in direction and not a reflection of these teams or the talent that consists within them.
The development of Monolith’s Wonder Woman videogame will not move forward. 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. This is another tough decision, as we recognize Monolith’s storied history of delivering epic fan experiences through amazing games. We greatly admire the passion of the three teams and thank every employee for their contributions. As difficult as today is, we remain focused on and excited about getting back to producing high-quality games for our passionate fans and developed by our world class studios and getting our Games business back to profitability and growth in 2025 and beyond.
This decision comes after a challenging period for Warner Bros.' gaming division. Earlier this year, another Bloomberg report highlighted issues with the Wonder Woman project, which had undergone a reboot and a change in directors in early 2024. The company also faced setbacks with the lukewarm reception to Suicide Squad: Kill the Justice League and the shutdown of MultiVersus, alongside layoffs at Rocksteady.
Adding to the turmoil, Warner Bros. Games has recently undergone a significant restructuring. Long-time games head David Haddad announced his departure, and there have been rumors that the division might be sold off. This move is a significant setback for Warner Bros.' efforts to expand its DC universe through gaming, especially as James Gunn and Peter Safran recently mentioned that the first DCU video game is still a couple of years away.
The closure of these studios marks a loss for the gaming industry. Monolith Productions, established in 1994 and acquired by Warner Bros. in 2004, is renowned for its Middle-earth: Shadow of Mordor series, which introduced the innovative Nemesis system, patented by Warner Bros. in 2021. Player First Games, founded in 2019, developed MultiVersus, which, despite critical acclaim and initial success, did not meet Warner Bros.' expectations. WB San Diego, also established in 2019, focused on mobile and free-to-play games.
These closures are part of a broader trend of increasing layoffs, project cancellations, and studio shutdowns in the gaming industry over the past three years. In 2023, over 10,000 game developers were laid off, a number that rose to over 14,000 in 2024. Although 2025 has seen several closures, the precise impact on individuals remains unclear due to fewer companies disclosing these figures.