Hollywood’s Gaming Gamble: Challenges Ahead

Warner Bros. Discovery (WBD) recently closed three of its gaming studios, highlighting the precarious relationship between Hollywood and the gaming industry. This decision follows significant financial losses, notably a $200 million setback attributed to the poorly received “Suicide Squad: Kill the Justice League.” While WBD remains a significant player in the gaming space, its competitors mostly act as licensors after major players like Disney exited game development in 2016. As WBD focuses on in-house intellectual property, it is poised to become a larger licensor.

The landscape for gaming adaptations into film and television is complicated. Major studios like Skydance, Bad Robot, and Blumhouse are exploring gaming IP, but success has been limited. Skydance Interactive is still developing its AAA New Media division, with “Marvel 1943: Rise of Hydra” expected in 2025. Meanwhile, Bad Robot Games is yet to see significant success after its partnership on “Silent Hill: Ascension,” which received lackluster reviews. Netflix, with a substantial subscriber base of 300 million and a commitment of over $300 million for “The Electric State,” is pivoting towards mobile and cloud-based games connected to its film and TV offerings.

Upcoming releases include WBD’s “A Minecraft Movie” on April 4 and HBO’s “The Last of Us” returning on April 13. Despite these efforts, many studios remain hesitant about developing new adaptations, especially in live-action formats, due to the high costs associated with AAA games that have achieved photorealistic standards. Animation, while also costly, has seen some success, as evidenced by Netflix’s “Arcane.” The lucrative market for high-grossing gaming films is underscored by the “Super Mario Bros. Movie,” which earned over $1 billion, setting the stage for more ambitious adaptations.

However, trends show a tightening of budgets, with Netflix scaling back ambitious projects like a live-action “Horizon Zero Dawn” series. The overall sentiment indicates that while Hollywood is increasingly interested in gaming, the financial realities of both industries may hinder further integration of gaming IP into traditional media.

Source: VARIETY