The video game industry continues to face tough times, and the latest blow comes from Warner Bros. Games. The company has officially shut down multiple studios, including Monolith Productions (best known for Middle-earth: Shadow of War), Player First Games (MultiVersus), and Warner Bros. Games San Diego, which primarily focused on free-to-play mobile titles. In addition to the closures, Warner Bros. has also confirmed that Monolith’s long-awaited Wonder Woman game has been canceled.

Another Major Shake-Up in the Gaming Industry

The news was first reported by Bloomberg’s Jason Schreier on Bluesky, with WB later confirming it in a statement to Kotaku. While there had been rumors about Wonder Woman facing development challenges, the abrupt studio closures came as an unexpected gut punch for many.

In their official statement, Warner Bros. Games explained the reasoning behind their decision:

“We have had to make some very difficult decisions to structure our development studios and investments around building the best games possible with our key franchises – Harry Potter, Mortal Kombat, DC, and Game of Thrones. After careful consideration, we are closing three of our development studios – Monolith Productions, Player First Games, and Warner Bros. Games San Diego. This is a strategic change in direction and not a reflection of these teams or the talent that consists within them.”

Wonder Woman Game Officially Canceled

The statement also confirmed that Monolith’s Wonder Woman project will no longer be moving forward.

Many fans had high hopes for the Wonder Woman game, especially given Monolith’s reputation for developing high-quality action titles with unique gameplay mechanics. The game was set to feature the acclaimed Nemesis System from Shadow of Mordor and Shadow of War, a mechanic that allowed enemies to remember past encounters with the player, creating a more dynamic and immersive experience. Now, that ambitious vision has been scrapped entirely.

The Bigger Picture: WB Games’ Future Strategy

Warner Bros. Games is going through a major restructuring, and the company claims it is focusing on “key franchises” such as Harry Potter, Mortal Kombat, DC, and Game of Thrones. Their statement also hints at an effort to return to profitability, stating:

“As difficult as today is, we remain focused on and excited about getting back to producing high-quality games for our passionate fans, developed by our world-class studios, and getting our Games business back to profitability and growth in 2025 and beyond.”

While this might sound reassuring to investors, it’s yet another sign of how unstable the gaming industry has become for developers. With rising costs, longer development cycles, and increasing pressure to deliver blockbuster hits, studios are facing more uncertainty than ever before.

The Human Cost of Studio Closures

Beyond the corporate restructuring and financial implications, the real tragedy here is the loss of jobs. Hundreds of talented developers are now left scrambling for new opportunities in an industry that has already seen widespread layoffs over the past year. Monolith Productions, in particular, had a storied history, creating beloved titles like No One Lives Forever and F.E.A.R. before shifting to their Middle-earth series. Player First Games had just launched MultiVersus, which, despite a rocky launch, had shown potential as a fun and competitive platform fighter. Meanwhile, Warner Bros. Games San Diego, which primarily worked on mobile projects, is also gone without much fanfare.

It raises the question: if even successful studios aren’t safe, who is?

What Does This Mean for the Future of Warner Bros. Games?

This move suggests that WB is putting all its chips on its most recognizable franchises. With the continued success of Hogwarts Legacy and Mortal Kombat 1, the company seems to be prioritizing projects that tie into major IPs with established audiences. This could mean more sequels, live-service games, and fewer risks on original or experimental projects.

The loss of Monolith is particularly concerning because they were known for creating unique, single-player experiences with deep mechanics. If WB’s focus shifts entirely to live-service and multiplayer-driven games, fans of narrative-driven action titles might be left disappointed.

The Industry Trend: More Layoffs, More Uncertainty

Unfortunately, this is just the latest in a string of layoffs and studio closures in the gaming industry. From Embracer Group’s mass shutdowns to Epic Games’ workforce cuts, the trend is clear: even major companies are struggling to balance rising costs with revenue expectations. Many developers are questioning the sustainability of the current industry model, where massive budgets and long development cycles put immense pressure on studios to deliver mega-hits or face the axe.

What Happens Next?

For now, the fate of Warner Bros. Games’ remaining studios—such as NetherRealm (Mortal Kombat), Rocksteady (Suicide Squad: Kill the Justice League), and Avalanche (Hogwarts Legacy)—remains uncertain. While those teams are still active, this restructuring signals that WB isn’t afraid to make sweeping cuts if a project doesn’t align with their financial goals.

As for the talented developers who lost their jobs, we can only hope they land on their feet and find new opportunities elsewhere. The gaming industry is brutal, but its creators are resilient.