Warner Bros. Discovery (WBD) executives have hinted at a possible shift in strategy for WB Games, potentially introducing more free-to-play games and licensing out popular intellectual properties (IPs) to third-party publishers. This news comes following the recent underperformance of “Suicide Squad: Kill the Justice League” and the phenomenal success of “Hogwarts Legacy.”
Despite the success of WB Games, which has been profitable for the past 15 years, the company appears to be taking a more cautious approach. During a recent Q2’24 earnings call, WBD executives JB Parette and CEO David Zaslav indicated that they are considering two new strategies:
1.
More Free-to-Play Games:
The company might be exploring the development of more free-to-play games, a popular model that has seen significant success in the gaming industry.2.
Licensing Out Popular IPs:
WBD could license out some of its most popular IPs, including Batman and Superman, to third-party studios and publishers. This strategy would allow the company to reduce risk and potentially tap into the expertise of other developers.This potential shift in strategy resembles the model employed by Disney, which licenses out popular franchises like Star Wars and Marvel to publishers such as Electronic Arts and Ubisoft. While nothing has been officially confirmed yet, Zaslav’s comments suggest that a new Superman game might be in development.
The recent underperformance of “Suicide Squad: Kill the Justice League” has likely prompted WBD to re-evaluate its approach to game development. The company is now looking for ways to mitigate risk and maximize the potential of its lucrative IPs. Whether this means a move towards free-to-play games, licensing deals, or a combination of both, it is clear that WB Games is adapting to the evolving landscape of the gaming industry.
