In the gaming realm of 2023, the standout performer was undeniably Hogwarts Legacy, securing its place as the year’s best-selling game with an impressive 22 million copies sold.
However, despite this resounding success in the single-player domain, Warner Bros. Discovery, the game’s publisher, is charting a strategic shift away from the traditional AAA console games toward a landscape dominated by free-to-play, live-service, and mobile releases.
The announcement was made during a Morgan Stanley speaking event where J.B. Perrette, the head of gaming at Warner Bros. Discovery, shed light on the company’s future plans.
Addressing the challenges faced by the company, Perrette acknowledged the volatility inherent in the AAA console business.
He emphasized that the success of titles like Harry Potter could make a year exceptionally lucrative, but the absence of a significant release or the occurrence of disappointments, as seen with the underwhelming performance of Suicide Squad: Kill the Justice League, could result in instability.
The latter, released on January 30, fell short of expectations, prompting the company’s CFO, Gunnar Wiedenfels, to declare the game’s shortcomings during earnings call on February 23.
Looking ahead, Warner Bros. Discovery aims to pivot towards a more diversified gaming portfolio, with a heightened focus on mobile, live-service, and free-to-play titles.
The company intends to leverage its billion-dollar-plus intellectual properties (IPs), including Harry Potter, DC, Mortal Kombat, and Game of Thrones, in shaping this new gaming strategy.
This shift aligns with statements made by CEO David Zaslav in November, signaling a departure from the traditional AAA console-centric approach.
Perrette acknowledged the setback faced with Suicide Squad but maintained that the failure served as a catalyst for reevaluating their gaming strategy.
However, there is a notable paradox in this strategic pivot – while recognizing the failure of Suicide Squad, the company is doubling down on the live-service aspect that contributed to its downfall.
This decision appears risky, especially in an industry where surveys indicate an overwhelming number of studios, over 500, are actively engaged in developing live-service games.
The concern arises that not every publisher entering this competitive space may deliver games that truly engage players, potentially leading to more failures and premature deaths for games in the coming years.
