Warner Bros Discovery reports that its gaming division is "substantially underperforming"

Warner Bros Discovery reported a financial setback, attributing a loss exceeding $100 million to the disappointing performance of MultiVersus.

During a recent financial call, covered by VGC, CEO David Zaslav addressed investors stating that their gaming segment is not reaching its full potential. Despite having popular and successful franchises like Hogwarts Legacy, Mortal Kombat, Game of Thrones, and DC – with a special mention of Batman – the company is falling short.

To enhance their performance, Warner Bros Discovery plans to concentrate development on these four successful series, working with proven studios to boost success rates.

Zaslav explained that their game division took an over $100 million writedown this quarter due to poor results from releases, particularly MultiVersus. This brings the total games business writedown for the year to above $300 million, a significant reason for the decline in the Studios' profit.

Looking ahead to Q4, they predict that gaming results may remain flat or improve slightly compared to last year. This outlook is influenced by the November release of Hogwarts Legacy on the Switch and reduced expenses.

The CEO also emphasized the need for the studio to consistently deliver better outcomes, acknowledging the current underperformance of their gaming division.