4 July, 2025
warner-bros-games-restructures-around-core-franchises

LOS ANGELES – In a strategic overhaul, Warner Bros. Games has restructured its operations into divisions focused on its most successful franchises: Harry Potter, Game of Thrones, Mortal Kombat, and DC. This move aims to streamline development and capitalize on the enduring popularity of these iconic brands.

Immediate Impact

The restructuring, confirmed by Warner Bros. through Variety, elevates three key studio heads to senior leadership roles. Yves Lachance, previously head of Warner Bros. Games Montreal, is now senior vice president of development, overseeing the Harry Potter and Game of Thrones divisions. Meanwhile, Shaun Himmerick, the studio head of Netherrealm Studios, takes charge of the Mortal Kombat and DC titles as senior vice president of development. Steven Flenory, from Warner Bros. Games New York Studio, assumes the role of senior vice president of central tech and services, managing game technology and customer operations.

Key Details Emerge

According to Variety, Warner Bros. has assured that no layoffs or executive exits occurred due to the restructuring. This shift follows Warner Bros. Discovery’s earlier announcement to divide into two publicly traded entities: WBD Global Networks and WBD Streaming & Studios, with the games division under the latter, led by CEO David Zaslav.

By the Numbers

Warner Bros. Q1 2025 financial report highlighted a 48% decrease in games division revenue, citing the failure of Suicide Squad: Kill the Justice League as a major factor.

Industry Response

This restructuring comes amid a challenging period for Warner Bros. Games. Despite the success of Hogwarts Legacy in 2023, the company faced setbacks with the commercial underperformance of titles like Suicide Squad: Kill the Justice League and MultiVersus. Even Mortal Kombat 1, which sold over 5 million copies, did not meet sales expectations compared to its predecessors.

Background Context

The timing is particularly significant as Warner Bros. navigates a turbulent market. Former games chief David Haddad resigned in January, and by February, the company shuttered three studios, including MultiVersus developer Player First Games, and Monolith Productions, known for Middle-earth and F.E.A.R., leading to the cancellation of a Wonder Woman game.

What Comes Next

Warner Bros. Games is not resting on its laurels. The company recently launched Mortal Kombat 1: Definitive Edition and announced a new mobile RPG, DC World Collide. Additionally, a Switch 2 port of Hogwarts Legacy was released on June 5. However, the future slate of titles remains largely undefined, leaving industry watchers curious about Warner Bros. Games’ next moves.

As the gaming landscape evolves, Warner Bros. Games’ restructuring indicates a strategic pivot to leverage its most powerful franchises, aiming to stabilize and grow its market presence in a competitive industry.