It appears the underwhelming performance of Suicide Squad: Kill the Justice League or the historical sales of Hogwarts Legacy wasn’t enough to deter Warner Bros. Discovery from its commitment to the live service and free-to-play model in gaming.
At the recent Morgan Stanley Technology, Media, and Telecom Conference, JB Perrette, a Warner Bros Discovery executive, highlighted plans to diversify the company’s gaming portfolio. It’s a strategy that includes a stronger focus on mobile and multi-platform free-to-play games, aiming to mitigate the volatility associated with big-budget game releases.
The previous two years showcase the highs and lows of Warner Bros. Games’ projects. Hogwarts Legacy was as an undeniable success, making close to a billion in revenue in two weeks en route to becoming the best-selling game of the year worldwide. However, Gotham Knights and more specifically, Suicide Squad: Kill the Justice League, has forced a reevaluation of its approach toward video game development and release strategies. Notably, Perrette pointed out the inherent volatility in relying solely on AAA console-based games and suggested a more holistic approach involving Warner Bros.’ four core franchises: Mortal Kombat, Game of Thrones, Harry Potter, and DC.
Warner Bros. Discovery’s new strategy aims to create a consistent revenue stream with an increased focus on two of the most competitive but lucrative spaces in gaming: free-to-play and mobile. Perrette envisions developing live service games that can provide a dynamic, ongoing world for players to inhabit, reminiscent of a similarly immersive experience offered by Hogwarts Legacy, albeit with continuous engagement and monetization opportunities.
This pivot towards live service and free-to-play models has been part of its pipeline for at least the better part of the last year, ever since David Zaslav, the CEO, hinted at a shift in focus towards always-on gameplay and multi-platform extensions. The goal is clear: to ensure that players spend more time and, implicitly, more money across a variety of platforms.
Naturally, there’s a healthy dose of skepticism surrounding this announcement. Several companies have already backed off from their live service plans, including giants such as Microsoft and Sony. And while EA still seems to be invested in it, there’s this feeling that it’s only a matter of time before it drops out of the genre as well.
With that said, Warner Bros. Discovery’s only successful projects lately have been single-player titles, which begs the question, why?
While live service models offer the potential for an absurd amount of potential revenue and growth, its over-reliance on monetization, often at the expense of game quality and player experience, has made it divisive for most gamers, except in rare occasions like in Helldivers 2, which has been described as an oddity due to several reasons.
With Harry Potter: Quidditch Champions and Monolith Productions’ upcoming Wonder Woman Game, among others, both in development, there’s genuine concern they’ll become microtransaction-heavy titles.
Amidst this uncertainty, what’s clear is that the company is committed to exploring live service and mobile with its blockbuster franchises – long-term success be damned.
