WB To Focus On Live Service & Mobile Games; Considers AAA Market “Very Volatile”

In a recent Morgan Stanley webcast, Warner Bros. Discovery Executive JB Perrette revealed that the company is undergoing a significant shift in its gaming strategy, placing a stronger emphasis on free-to-play and mobile titles. While the company remains committed to developing console games, it also recognizes the potential of titles that can engage players for extended periods.

Our business historically has been very triple-A console-based. That’s a great business when you have a hit like Harry Potter, it makes the year look amazing. And then when you don’t have a release, or unfortunately we also have disappointments—we just released Suicide Squad this quarter, which is not as strong—it just makes it very volatile.”

This strategic pivot comes amidst a backdrop of mixed results for Warner Bros. in the AAA console space. While the company boasts popular franchises like Harry Potter and DC Comics, recent releases such as Suicide Squad: Kill the Justice League failed to meet expectations and underperformed commercially. This has prompted the company to re-evaluate its approach to ensure the long-term success of its gaming division.

The Future Of AAA Titles

It’s important to acknowledge that this shift in strategy doesn’t signal a complete abandonment of traditional console games. Warner Bros. still intends to develop and publish high-quality titles for dedicated console players with the notable example being the upcoming Wonder Woman game which won’t have any live service elements. 

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While the shift to free-to-play and mobile markets provides new avenues for growth, I believe that it’s crucial to acknowledge the inherent challenges. The company must ensure that these new titles deliver engaging and fulfilling experiences for players, avoiding the pitfalls that plagued recent console releases, and striking a balance between generating revenue and providing value to players.