Netflix Signals Limited Interest In Warner Bros. Games As Industry Pressures Mount

Content: Netflix told investors it assigned no value to Warner Bros.’ video game division in its $82.7 billion acquisition agreement, a position that places some of the industry’s most recognizable franchises in an uncertain spot. The company framed the unit as negligible within the broader deal despite its past commercial successes, including Hogwarts Legacy’s global reach and the long-running strength of Mortal Kombat.

Executives outlined the stance during a conference presentation, where Netflix co-CEO Greg Peters was asked whether the acquisition would accelerate the company’s push into gaming. Peters said Warner Bros. Games had produced strong work over the years but stressed the group played no role in the financial model used to shape the agreement. His response left little doubt about how narrowly the company views the future of the business inside its expanding entertainment portfolio.

Warner Bros. Games oversees a network of high-profile studios: Rocksteady, Traveller’s Tales, Avalanche Software, NetherRealm, and others tied to long-standing licensed properties. Together, they have built a series that routinely defines major release cycles. Yet the past two years reshaped that reputation. Hogwarts Legacy hit enormous sales targets, but the division faltered soon after, moving from a position of momentum to one marked by costly setbacks and shrinking output.

The downturn accelerated in early 2024. Suicide Squad: Kill the Justice League and MultiVersus failed to meet expectations, taking a combined financial toll of around $300 million and hollowing out confidence inside the wider Warner Bros. Discovery group. By January, Games head David Haddad had exited. The restructuring that followed cut into core studio capacity. Monolith Productions, Player First Games, and Warner Bros. San Diego were all slated for closure. The company also confirmed the cancellation of its Wonder Woman game, a move that underscored how abruptly plans had shifted.

Warner Bros. Discovery President and CEO David Zaslav later acknowledged the depth of the slide in a financial call.

“We recognise is substantially underperforming its potential right now.” — David Zaslav

Announcements in June pointed to a narrowed strategy centered on four pillars: Mortal Kombat, Harry Potter, DC, and Game of Thrones. The goal is to stabilize output around dependable franchises while longer-term ownership questions remain unresolved. With the Netflix deal expected to close as late as mid-2027, the division faces a prolonged period where decisions will shape its identity without clarity about its eventual place inside the streaming company.

A small number of projects continue to move forward. Lego Batman: Legacy of the Dark Knight is planned for 2026 and appears insulated by its current timetable. A Hogwarts Legacy sequel is in development, and Rocksteady is working on a single-player Batman project, though both remain unannounced. NetherRealm has paused updates for Mortal Kombat 1 as it evaluates its next move, leaving open whether the studio will return to Mortal Kombat or pivot to another Injustice entry. WB Games Montreal, following the shelving of several pitches, is reportedly assisting other teams while developing a concept tied to Game of Thrones.

Netflix’s own game portfolio has grown inconsistently. The company has hired aggressively, canceled several internal efforts, and leaned on adaptations tied to its streaming catalog. Current priorities focus on narrative-driven titles linked to Netflix series, children’s games, social party formats, and ports such as Grand Theft Auto. How, or whether, Warner Bros.’ studios fit that agenda is not yet clear, but the absence of deal value suggests the unit will need to justify investment under new leadership if the acquisition proceeds.

Read also, Fortnite Rumored to Add Massive Warner Bros. Game Mode in December: New reports suggest Epic Games is preparing a Warner Bros.–themed mode for Fortnite on December 12, timed to the expected arrival of Chapter 7 and its new map.