Warner Bros. Discovery (WBD) has announced a new direction for its gaming division. They want to concentrate on mobile, free-to-play, and live-service games. This decision follows a mixed reception to its recent game launches, with Hogwarts Legacy proving successful and Suicide Squad: Kill the Justice League falling short of expectations.
J.B. Perrette, who leads WBD’s streaming and gaming division, spoke during a Morgan Stanley speaking event (thanks, Gamespot). They recognized the unpredictable nature of the AAA console game market at a recent industry event. While noting the achievements of “Hogwarts Legacy,” Perrette highlighted the importance of expanding revenue sources and reducing risk.
WBD considers these models to provide more reliable revenue than traditional AAA console games. The company also wants to prioritize the development of live-service games. They’re aiming to keep players engaged over long periods with regular updates and added content, which could result in continuous revenue streams.
“Rather than just launching a one-and-done console game, how do we develop a game around, for example, a Hogwarts Legacy or Harry Potter, that is a live-service where people can live and work and build and play in that world in an ongoing basis?”
J.B. Perrette
It sounds strange after their Suicide Squad-focused live service game did poorly, but their story-based Harry Potter game did amazing. They decided to continue what they did with the game that did poorly. That sounds silly to me, but I guess I don’t understand that kind of thing.
WBD plans to use its well-known characters from Harry Potter, Game of Thrones, and DC Comics in new mobile and free-to-play games. The company is confident that these popular franchises can be adapted to these formats while maintaining players’ interest. They have also hired a new person to manage the brands in the gaming division and have mentioned a plan for strategic investment to improve future game development, although they have yet to give specific details.
What amazes everyone is how different Warner Bros. acts compared to a place like Disney. Disney owns similar IPs and Franchises but does not normally directly participate in creating games using their characters. Disney likes to license out its franchise to developers, but WBD wants to continue making games themselves, taking a lot of the risk involved.
Perrette anticipates that this change will result in significant growth for WBD in the gaming sector over the next few years. Potential returns may be realized by 2025 or later. He noted the changing landscape of the gaming industry, emphasizing virtual reality and virtual worlds as areas with potential future growth. We’ll have to wait and see, but to me, the future doesn’t look very bright for WBD.
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