Warner Bros. Faces $100M Revenue Hit from MultiVersus Failure

Warner Bros. Discovery has confirmed that the free-to-play fighting game MultiVersus has underperformed, leading to an additional $100 million writedown in its gaming division for 2024. The game, likened to Super Smash Bros., was unable to meet expectations following developer Player First Games' acquisition by Warner Bros. in July. The financial struggles were emphasized during a recent earnings call, indicating that problems within the games sector have caused significant revenue losses. Warner Bros. noted a total writedown exceeding $300 million due to underperforming titles, including MultiVersus and Harry Potter: Quidditch Champions. With MultiVersus seeing dwindling active player counts and questions surrounding its future, Warner Bros. expressed intentions to recalibrate focus on proven franchises, which include Hogwarts Legacy and Mortal Kombat.

The future of MultiVersus remains uncertain, especially with declining player numbers and the company's shift in focus towards established franchises like Hogwarts Legacy and Mortal Kombat. The ongoing Season 4 is expected to commence on November 12, possibly offering new content, but large-scale support may be limited due to the financial implications of its underperformance.

MultiVersus launched in 2022, designed as a platform fighter to compete with iconic multiplayer games. Combining characters from various franchises under the Warner Bros. umbrella, it features heroes and villains from DC, Looney Tunes, and more. Despite an initial surge in popularity, the game struggled to maintain a robust player base following its relaunch, raising concerns about its long-term viability within the gaming market.