As Netflix is set to acquire Warner Bros Studios in what seems to be the biggest entertainment headline this year, one question remains: what’s going to happen to Warner Bros’ videogame department?
If the acquisition of Warner Bros. by Netflix is successful, everything from Warner Bros. Discovery’s film, gaming and television studios will transfer to the streaming giant. This includes studios in the gaming industry such as Rocksteady Studios, Avalanche Software, NetherRealms Studios, TT Games. Major franchises such as Hogwarts Legacy (and its sequel) and all the LEGO games will also be part of the Netflix umbrella once both companies decide to close sometime between late 2026 and early 2027.
There are plenty of burning questions surrounding this massive acquisition in entertainment history, but there’s also a silver lining for both companies’ video game departments.
Netflix has continuously supported its gaming division, Netflix Games, in the mainstream market. Ever since its November 2021 launch, games like Rise of the Golden Idol, Red Dead Redemption and a selection of Stranger Things games are available in its library. As long as you are an active Netflix subscriber, you can play all the games on your smartphone.
Warner Bros’ gaming department, on the other hand, had tumultuous years after shareholders and out-of-touch CEOs continued to push live-service and monetization in games, often resulting in major quality dips. Titles like the crossover fighting game MultiVersus were unfortunately axed despite numerous reworks. Suicide Squad: Kill the Justice League, which was supposed to be Rocksteady Studios’ saving grace, was critically panned for its bizarre integration of live-service and looter-shooter features.
Should Netflix acquire Warner Bros’ gaming division, we might see franchises getting re-released or, at best, saved from bad corporate decisions. A return of MultiVersus might be possible, or something entirely ambitious like bringing back the Nemesis System in a different shape or form. Imagine a MultiVersus fighting game featuring a roster from both Netflix and Warner Bros. IPs.
Cancelled projects like the Wonder Woman game might see the light of day, bringing the Nemesis System with it. Maybe we could see the next Arkham game using it? Personally, I just want to see a pen-and-paper Stranger Things game like Larian Studios’ Baldur’s Gate 3.
Of course, while this acquisition sounds good on paper, there are also concerns, especially with its pricing and subscription model. If Netflix is adamant on integrating future WB titles into Netflix Games, we could see a price increase for a standard Netflix subscription. Worse, these games might be locked behind a massive subscription paywall costing $100 per month. We might see Netflix responsible for dipping the quality of the upcoming Hogwarts Legacy sequel or the game that Rocksteady Studios is currently making.
But worst-case scenarios don’t just stop there. Expect major layoffs as Netflix and Warner Bros. restructure their gaming division. On a recent conference call with Netflix co-CEO Gregory Peters, they did not even consider WB Games during its acquisition. This could potentially shut down key studios that have underperformed since their inception. Studios like Rocksteady, which already faced brutal layoffs after Suicide Squad’s failure, could likely see their office shut down.
If the worst happens to Warner Bros.' gaming department, it is not the first time we have seen it. It happened in previous company acquisitions, most notably when Microsoft bought Zenimax for a staggering $7.5 billion. The results? Massive layoffs shook the company, and major studios under Zenimax’s umbrella, like Arkane Lyon, were unfortunately shut down, leaving the future of its iconic games like Dishonored and Prey in a complete blur.
This is not just a Warner Bros. issue; Netflix is also no stranger to shutting down big AAA studios. In 2024, Netflix axed a Southern California-based studio, wasting talents from popular gaming IPs like Overwatch, Halo, and God of War. Besides, we already know Netflix has prematurely dropped projects before, especially when it comes to cancelling TV shows if the numbers don’t fit their financial standards.
Overall? The Netflix-Warner Bros acquisition is a ticking time bomb that will likely shake headlines when it closes sometime next year, and its gaming division will likely take a hit, for better or worse. Here’s hoping existing gaming franchises and studios get the support and attention they deserve, unlike their time with Warner Bros.
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