Behind ‘Suicide Squad,’ the year’s biggest video game flop

David Haddad, head of video games for Warner Bros. Discovery Inc., visited Rocksteady Studios in London in February, delivering blunt news about the studio's latest game, "Suicide Squad: Kill the Justice League," which was performing poorly. Warner Bros. later revealed a $200 million loss on the game, one of the biggest failures in the gaming industry.
"Suicide Squad: Kill the Justice League" faced numerous development issues, including shifting visions, perfectionism, and an ill-suited genre pivot. Rocksteady, known for single-player games like the "Batman: Arkham" series, struggled to adapt to a live-service multiplayer model. The project, which expanded the studio's team from 160 to over 250, faced delays, a change in combat focus, and morale issues due to a lack of progress.
The game was first planned for release in 2019 or 2020 but faced continuous delays. Leadership's indecision and perfectionism, especially from co-founder Sefton Hill, created bottlenecks. Changes like an elaborate vehicle system were eventually scrapped, and the live-service design proved challenging for the team.
Despite internal concerns and the failure of similar games in the market, Warner Bros. executives remained optimistic. However, the game's eventual release in February 2024 was met with negative reviews, earning a 60 out of 100 on Metacritic and failing commercially despite significant marketing efforts.
Warner Bros. Chief Executive Officer David Zaslav faced multiple challenges, including declining TV ad sales and theater struggles, making the game's failure a significant blow. The game's flop overshadowed successes like "Hogwarts Legacy," a bestselling game from Warner Bros.
Rocksteady's co-founders left in 2022, replaced by Nathan Burlow and Darius Sadeghian. The studio is now focusing on a director’s cut of "Hogwarts Legacy" and planning a new single-player game, returning to its strengths. Warner Bros. remains committed to video games, a growing $262 billion industry expected to reach $312 billion by 2027, and plans more collaboration between its studios.
TD Cowen analyst Doug Creutz believes Rocksteady will have another chance, ideally with a project that aligns with their proven expertise.