Warner Bros. has made the difficult decision to cancel its highly anticipated Wonder Woman game and close 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 and later confirmed in a detailed report on Bloomberg. Warner Bros. subsequently verified the closures in a statement to Kotaku.

In their statement, Warner Bros. explained that these decisions were made to better align their development resources with their key franchises, including Harry Potter, Mortal Kombat, DC, and Game of Thrones. The company emphasized that this strategic shift is not a reflection on the talent within the affected studios but a necessary move to focus on producing high-quality games that meet their strategic priorities.

The Wonder Woman game, developed by Monolith Productions, will no longer proceed. Warner Bros. expressed regret over this decision, acknowledging Monolith's long history of creating exceptional gaming experiences, such as the critically acclaimed Middle-earth: Shadow of Mordor and its sequel, Shadow of War. Monolith, founded in 1994 and acquired by WB in 2004, was known for pioneering the innovative Nemesis system, which was patented by WB in 2021.

Player First Games, established in 2019, was behind MultiVersus, a game that received positive reviews but did not meet Warner Bros.' performance expectations. Similarly, WB San Diego, also founded in 2019, focused on developing mobile and free-to-play games.

This move comes amidst broader challenges within Warner Bros.' gaming division, including earlier reports of the Wonder Woman project facing difficulties after a reboot and change in leadership in early 2024. The division has also experienced layoffs at Rocksteady and a tepid response to Suicide Squad: Kill the Justice League, as well as the shutdown of MultiVersus.

Adding to the turmoil, David Haddad, the long-time head of WB Games, recently announced his departure, and there have been rumors that the gaming division might be sold off. The closure of these studios also impacts Warner Bros.' efforts to expand its DC universe-connected gaming initiatives, with James Gunn and Peter Safran recently stating that the first DCU video game is still a couple of years away.

The shutdowns at Warner Bros. are part of a broader trend in the gaming industry, which has seen over 10,000 layoffs in 2023 and more than 14,000 in 2024. While the exact impact of 2025 closures is less clear due to reduced reporting, these actions reflect ongoing challenges and restructuring within the industry.