Warner Bros. Discovery has said its games division is “substantially underperforming” in a recent earnings call outlining current performance, and what’s next for the company. While the outlook into the future is positive, it appears WBD has had a disappointing quarter, with its games division flagging behind.
“Even in an industry of hits and misses, we must acknowledge that our Studios business must deliver more consistently. This applies to our games business, which we recognise is substantially underperforming its potential right now,” CEO David Zaslav said, per . The plan, going forward, appears to be focussing on four key gaming franchises: ( ), DC (particularly ), , and .
Zaslav described these as the pillars of the WBD games division, with new projects set to rely on “proven studios to improve [WBD’s] success ratio.” Per further comment by CFO Gunnar Wiedenfels, part of the underperformance mentioned is due to . The company took a “USD $100+ million impairment due to the underperforming releases – primarily – this quarter.
” That brings the total write down for the WBD games business this financial year to over USD $300 million. For now, WBD is not expecting a significant upturn or change to these results, with Q4 expected to be “flat to modestly better” year-on-year. In the meantime, it’s alleged the company is currently looking to , to reverse its fortunes.
There has been no further news of this potential outcome since an August 2024 repo.