Warner Bros. is closing three game development studios – Monolith Productions, Player First Games, and WB San Diego – and canceling its planned Wonder Woman game, according to Bloomberg reporter Jason Schreier. This news, initially shared on Bluesky, was subsequently confirmed by WB in a statement to Kotaku.

The statement explains the closures as a strategic shift focusing development on key franchises like Harry Potter, Mortal Kombat, DC, and Game of Thrones. While acknowledging the talent and contributions of the affected teams, WB cited strategic priorities as the reason for halting Wonder Woman's development and the studio closures. The company expressed its admiration for the teams and their work, emphasizing a commitment to returning to profitability and growth by 2025.

This decision follows earlier reports suggesting difficulties with the Wonder Woman game, including reboots and director changes in early 2024. These challenges occurred amidst broader struggles within WB Games, including layoffs at Rocksteady, the mixed reception of Suicide Squad: Kill the Justice League, and the shutdown of MultiVersus. Further complicating matters, long-time games head David Haddad recently departed, fueling rumors of a potential sale of the division.

The closures represent a significant setback for WB's DC universe gaming ambitions, especially considering James Gunn and Peter Safran's recent announcement that the first DCU video game is still "a couple of years" away.

The industry loses three established studios with significant legacies. Monolith Productions, founded in 1994 and acquired by WB in 2004, is renowned for the Middle-earth: Shadow of Mordor series and its pioneering Nemesis system (patented by WB in 2021). Player First Games (established 2019) developed MultiVersus, a critically acclaimed title that, despite initial success, fell short of expectations. WB San Diego (also established 2019) focused on mobile, free-to-play games.

These shutdowns are part of a larger trend in the games industry. The past three years have seen increasing layoffs, project cancellations, and studio closures. While precise figures for 2025 are difficult to obtain due to underreporting, the pattern of significant job losses continues a trend that saw over 10,000 layoffs in 2023 and over 14,000 in 2024.