Warner Bros Games continues brutal 2026 restructuring. Reports confirm Player First Games’ San Diego studio eliminated multiple roles this week, impacting Mortal Kombat 1 live-service support and Multiversus operations. The cuts follow Suicide Squad: Kill the Justice League’s commercial disaster and MultiVersus Season 2 struggles, signaling WB’s aggressive cost-slashing across live-service divisions.
The San Diego Cuts
Bloomberg reports Warner Bros Games eliminated ‘multiple roles’ at Player First Games’ San Diego office, primarily affecting support teams for Mortal Kombat 1 and Multiversus. Player First Games – acquired by WB 2021 – handles live-ops, balance patches, DLC characters for both franchises. No full studio closure announced, but headcount reductions hit hardest where Suicide Squad fallout lingers.
Context reveals severity. Suicide Squad launched February 2024 to 7/10 reviews but cratered to 1K concurrent players by summer. $200M+ development vanished in live-service irrelevance. Multiversus Season 2 stumbled with balance complaints, empty queues. Mortal Kombat 1 thrives technically (Khaos Reigns expansion success) but live-service grind alienates casuals. WB demands immediate profitability from every live title.
Reddit’s r/Games community debates impact: MK1 loses skin pipeline, Multiversus risks Season 3 delays. WB consolidates live-service expertise into fewer hubs, prioritizing single-player successes like Hogwarts Legacy sequels.
WB’s Broader Restructuring
Warner Bros Discovery’s gaming division bleeds. Suicide Squad’s $400M+ total cost (development + marketing) generated dismal returns despite $70M opening weekend. MultiVersus free-to-play model struggles against Fortnite, Overwatch 2 dominance. Mortal Kombat 1 survives through premium sales but live-service monetization underperforms.
2025 saw 100+ roles cut across WB Games Montreal, Avalanche (Hogwarts), NetEase partnerships. San Diego represents latest in cost-control measures. David Zaslav prioritizes debt reduction over gaming speculation post-$20B+ streaming losses. Live-service pivot – chasing Fortnite revenue – failed spectacularly.
| WB Live-Service Title | Launch | Fate |
|---|---|---|
| Suicide Squad | Feb 2024 | 1K players by summer |
| Multiversus S2 | May 2025 | Balance issues, empty lobbies |
| Mortal Kombat 1 | Sep 2023 | Live-ops cuts incoming |
Industry Layoff Context
2026 gaming layoffs accelerate. Microsoft cut 650 Bethesda roles post-Starfield. Sony eliminated 900 Japan Studio positions. Unity, Epic, Riot all trimmed live-service bloat. Warner Bros joins bleeding pattern – live-service hype cycle crashed against Fortnite’s monopoly.
Player First Games survives through Mortal Kombat core competency. Ed Boon tweets support for remaining San Diego team. WB prioritizes single-player franchises: Hogwarts Legacy 2, Batman Arkham, potential Fable ports. Live-service becomes side project, not core business.
Impact on Flagship Franchises
Mortal Kombat 1 loses live-ops velocity but retains premium fighter core. Khaos Reigns expansion delivered Havik, Noob Saibot successfully. Future DLC leans guest characters (Omni-Man rumors) over roster bloat. Multiversus fights for relevance – empty queues demand balance overhaul WB hesitates funding.
WB Discovery stock pressure forces ruthless decisions. Gaming represents 5% corporate revenue versus $40B+ media empire. Suicide Squad debacle proved live-service speculation unwise. Hogwarts Legacy’s 25M sales model guides future: single-player excellence over seasonal grinds.
FAQs
How many jobs cut at San Diego?
Bloomberg reports ‘multiple roles’ eliminated at Player First Games. Exact numbers undisclosed but affects MK1/Multiversus live-ops teams.
Is Player First Games closing?
No full closure. Restructuring focuses core Mortal Kombat support while trimming Multiversus overhead. WB consolidates live-service expertise.
Impact on Mortal Kombat 1?
Slower DLC cadence, reduced live-events. Premium fighter remains priority over battle pass grind. Khaos Reigns success secures short-term future.
Multiversus Season 3 delayed?
Likely. Balance complaints + empty lobbies demand major work. WB reevaluates free-to-play viability post-Suicide Squad.
Why WB cutting live-service?
Suicide Squad’s $400M+ failure, MultiVersus struggles. Live-service trend chasing Fortnite failed. Single-player (Hogwarts 25M) proves profitable model.
More WB layoffs coming?
Probable. Debt reduction targets gaming speculation. 2025 cuts hit Montreal, Avalanche. 2026 consolidates around proven franchises.
Mortal Kombat 2 status?
Early development safe. NetherRealm single-player focus aligns WB strategy. Live-service elements minimized post-San Diego cuts.
Cost-Cutting Reality
San Diego layoffs expose live-service house of cards. Suicide Squad’s catastrophe taught expensive lesson – Fortnite clones rarely succeed. WB pivots toward Hogwarts, Batman, Mortal Kombat premium models. Player First Games survives through fighting game expertise. Gaming’s brutal economics favor proven formulas over seasonal speculation. Developers brace for continued consolidation across industry.