Warner Bros. has announced the cancellation of its anticipated Wonder Woman game and the closure of three of its studios: Monolith Productions, Player First Games, and WB San Diego, as reported by Bloomberg's Jason Schreier. The news was initially shared on Bluesky and later detailed in a Bloomberg report. Warner Bros. confirmed the closures to Kotaku, stating:

We have had to make some very difficult decisions to structure our development studios and investments around building the best games possible with our key franchises -– Harry Potter, Mortal Kombat, DC and Game of Thrones. After careful consideration, we are closing three of our development studios – Monolith Productions, Player First Games and Warner Bros. Games San Diego. This is a strategic change in direction and not a reflection of these teams or the talent that consists within them.

The development of Monolith’s Wonder Woman videogame will not move forward. Our hope was to give players and fans the highest quality experience possible for the iconic character, and unfortunately this is no longer possible within our strategic priorities. This is another tough decision, as we recognize Monolith’s storied history of delivering epic fan experiences through amazing games. We greatly admire the passion of the three teams and thank every employee for their contributions. As difficult as today is, we remain focused on and excited about getting back to producing high-quality games for our passionate fans and developed by our world class studios and getting our Games business back to profitability and growth in 2025 and beyond.

This decision comes after earlier reports this year indicated that the Wonder Woman project was facing challenges, including a reboot and a change in directors in early 2024. These issues were part of broader difficulties within Warner Bros.' gaming division, which also saw layoffs at Rocksteady and the underwhelming response to Suicide Squad: Kill the Justice League, along with the closure of MultiVersus.

Recent developments suggest a restructuring at WB Games, highlighted by the departure of long-time games head David Haddad and rumors about the potential sale of the gaming division. This move significantly impacts Warner Bros.' efforts to expand its DC universe through gaming, especially following a statement from James Gunn and Peter Safran indicating that the first DCU video game is still a few years away.

The closure of these studios marks a significant loss for the gaming industry. Monolith Productions, founded in 1994 and acquired by Warner Bros. in 2004, is renowned for its Middle-earth: Shadow of Mordor series, which introduced the acclaimed Nemesis system, patented by WB in 2021. Player First Games, established in 2019, developed MultiVersus, which, despite critical acclaim and a successful launch, did not meet WB's expectations. WB San Diego, also founded in 2019, focused on mobile and free-to-play games.

These closures reflect a continuing trend of layoffs, project cancellations, and studio shutdowns in the gaming industry. In 2023, over 10,000 game developers were laid off, a number that increased to over 14,000 in 2024. While specific figures for 2025 are less clear due to fewer companies reporting these layoffs, the impact on the industry remains significant.