Warner Bros. eyes outsourcing IP library to game studios
CALIFORNIA, UNITED STATES — Warner Bros. Discovery is exploring new avenues to capitalize on its extensive intellectual property (IP) library by potentially outsourcing its famous franchises to external game developers.
This strategic move aims to bolster the company’s gaming presence and leverage its iconic brands in the video game industry.
CEO highlights gaming as a growth opportunity
During a recent earnings call, CEO David Zaslav emphasized the importance of expanding Warner Bros.’s gaming business.
He noted the significant interest from external studios in utilizing Warner Bros.’ IP, suggesting that such collaborations could help the company “get bigger” in the gaming sector.
“We have 11 studios here, and we have a lot of IP…The IP that we own and the value that it has in the gaming space is something we’re looking to take advantage of,” Zaslav added.
Mixed results prompt strategic reevaluation
Warner Bros.’s internal game development efforts have yielded mixed results recently, with the success of Hogwarts Legacy contrasting sharply with the underperformance of Suicide Squad: Kill the Justice League.
This disparity has prompted the company to reassess its strategy and consider licensing its IP to external studios.
Zaslav acknowledged the challenges, stating, “You still need a great game, and the reality is, we’ve had the unfortunate- in a short period of 12 months, we went from having the record year in 2023 with Hogwarts Legacy to unfortunately having the opposite side of that spectrum with Suicide Squad.”
Expanding into free-to-play gaming
Warner Bros. is also keen on expanding its presence in the free-to-play gaming market, which represents a significant portion of the $200 billion games industry.
The acquisition of Player First Games, the developer behind Multiversus, underscores this strategic shift. JB Perrette, president of global streaming and games, highlighted the potential of free-to-play games to provide stability amid the cyclical nature of console-based releases.
Leveraging iconic franchises
With a vast array of beloved franchises such as Batman, Harry Potter, and Game of Thrones, Warner Bros. sees an opportunity to create immersive gaming experiences that resonate with fans.
Zaslav noted that successful games like Hogwarts Legacy demonstrate the potential of integrating popular IP into interactive entertainment, allowing players to engage deeply with the worlds they love.
As Warner Bros. navigates the evolving gaming landscape, the company remains committed to exploring new partnerships and strategies to maximize the value of its IP in the gaming space.
