During the fourth quarter of 2024, Warner Bros experienced a 29% decline in its games revenue

For the quarter ending December 31, 2024, Warner Bros. reported a 29% reduction in revenue for its gaming division compared to the previous year's fourth quarter.

The company did not disclose specific figures for its gaming revenues, which are included within the broader Studios segment.

Nonetheless, the company highlighted stronger performances from games like Hogwarts Legacy and Mortal Kombat 1 over the same timeframe the previous year.

The Studios division saw a 16% rise in revenue, reaching $3.65 billion in the fourth quarter, while the annual revenue decreased by 5% to $11.60 billion.

On a broader scale, Warner Bros. experienced a 1% decline in fourth quarter revenue to $10 billion, with a 4% drop to $39.3 billion for the full year, compared to the previous year.

In communications to shareholders, Warner Bros. discussed a restructuring that included the shutdown of Monolith Productions, Player First Games, and Warner Bros San Diego. This led to the cancellation of Monolith’s Wonder Woman project.

The company stated, "2024 was disappointing for our gaming division, prompting a restructuring strategy to concentrate on successful intellectual properties and collaborate with top-tier studios."

The firm intends to build its gaming strategy around four major franchises: Harry Potter, Game of Thrones, Mortal Kombat, and key DC Universe characters like Batman, each having crossed $1 billion in consumer sales previously.

The success of Hogwarts Legacy was underscored as pivotal to their strategic realignment.

Warner Bros. expressed confidence that their revised strategy will enable the creation of high-quality games with sustained consumer interest, aiming to return the gaming division to profitability by 2025 and contribute more significantly to future growth.