Netflix Co-CEO Gregory Peters has shed some light on WB Games’ future as part of last week’s shocker announcement buyout deal. Warner Bros.’ gaming division was oddly left out of the press releases, which had some wondering if it had been left off the table, but it seems there was a different reason for its omission. Details regarding WB Games were shared in an investors’ call meeting (via PocketGamer), and well, to sum it up, WB Games just wasn’t of enough interest to be included in the original announcement.
“While they definitely have been doing some great work in the game space, we actually didn’t attribute any value to that from the get-go because they’re relatively minor compared to the grand scheme of things.”
-Gregory Peters, Netflix Co-CEO, President & Director
Now, the Netflix Exec didn’t seem to be totally slamming WB Games as he did provide positive input regarding its successes, and in particular, Hogwarts Legacy, which heavily taps into the highly profitable Harry Potter franchise. However, he also admitted that Netflix hadn’t really “built in” the gaming division into its buyout deal.
“Now we’re super excited because some of those properties that they’ve built, Hogwarts is a great example of that, have done quite well, and we think that we can incorporate that into what we’re offering. They’ve got great studios and great folks working there. So we think that there’s definitely an opportunity there. But just to be clear, we haven’t built that into our deal model.”
Netflix has been working on developing its own gaming division for some time, where it has partnered with other entities such as Rockstar Games to offer mobile titles based on Grand Theft Auto and Red Dead Redemption. Peters noted these projects have been the most successful of their mobile offerings, and these “IP enhancements” could also be applied to WB Games.
However, now that Paramount Skydance has thrown its $100 billion bid into the ring, the potential for Netflix’s deal to go through seems more in doubt, and so it could be a moot point on what it plans to do with WB Games. On the flip side of things, it does bring to the front how another company might have other strategies for its IPs. The gaming division has had its share of ups and downs, including many layoffs and studio closures, in recent years, and one way or another, could probably use a new direction to survive.
Discussion (14 replies)
Join Discussion →I saw this and had to chuckle.
Felt the same, a sort of facepalm moment followed by a giggle.
I also feel sorry for the studios still employed by WB Games. Doesn't sound like present, or future, overlords have much consideration for them.
Wait unril they find out what a game like Mortal Kombat brings in in revenue.
Wasn' t the gaming industy bigger then the movie one?
Right until WB flubbed the ball on a couple games, and completely abandoned a couple projects they didn't have the utmost confidence in. Basically they devalued the gaming division to make it a more attractive purchase target.
I went to look it up in their published income statement, but they lump WB Games in with "Studios", so you can't see it distinguished from other content. They only mention a massive drop in revenue lately (almost 50%), along with a massive cut in spending following their latest restructuring around just 4 major IPs (Harry Potter, Mortal Combat, DC, and Game of Thrones).
Out of a total of about $9B in quarterly revenue, a bit over $2B was attributed to "Studios".. but that includes TV/Movie studios as well as game studios... so.... not sure how much of that was games.
Looking at how much new content they have released in recent years.... I really can only think of Harry Potter, and that's free on EGS right now. Anything DC lately has been a flop, and maybe there has been a serialized MC release in there recently, not sure. Game of Thrones I can only really recall mobile slop lately, but that probably brings in whale money... not sure how much, but maybe something.
But yeah, out of $9B in quarterly revenue, I would totally believe WB games is pretty minor in that scope.
The most recent Mortal Kombat is from 2023 and sold around 6.2 million copies the previous one around 15 million, enough to buy a couple stick of ram in any case
So... They are correct?
Doesnt mean they arent going to do anything, but perhaps they should do a different strategy? Idk what it would be though. Spread the game everywhere, discount coupons for netflix suscribers on plataforms that would allow such specific offers?
Nothing to sneeze at sure ... but certainly not Pokemon or GTA numbers. I kinda think Netflix is right here - the gaming division doesn't really move the needle that much, when you are looking at $9B per quarter.
Yeah, but looking at some of their IPs. Their is potential for a lot of profits if done correctly. Just needs the right visionary to see it through.
Can say that about a lot of IPs though. There are a lot of great ideas out there, but the hard part is executing.
Apparently WB Games makes more money off Lego than anything else. Which... oddly enough... is ~not~ one of the 4 pillars that WB Games announced they would be focusing on in the restructuring (Harry Potter, Game of Thrones, Mortal Kombat, and DCU) --- maybe because they had to license them from Lego.
Not a lot of IPs are as big as DC though... That's a huge catalog of possible content to make games around.
Netflix should want DC's animation division they have been really solid.
I did read that Gunn's contract got an extension to 2027.
Indeed. And yet, Suicide Squad still exists. I can't think of a DC-based game since the Batman Arkham series years ago, if we exclude the Lego ones, although I'm sure some have existed.
But you are absolutely correct - there's a lot of content there to mine and there ~could~ be some great games made.