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Pixel P&L: Warner Bros. Games' $300M Mistake (2025)
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Games' $300M Mistake (2025) </h1> <div class="bg-primary-100 text-common !leading-common rounded-lg pl-5 pr-2 py-4 mb-2 space-y-2 text-primary-500"> <div class="font-semibold">Table of Contents</div> <a class="list-item toc-h2" href="#toc-0">Warner Bros. Games Stumbles in Live-Service Shift, Faces $300 Million Writedown</a> <a class="list-item toc-h2" href="#toc-1">Esports World Cup to Feature Call of Duty: Black Ops 6 for 2025 Edition, Call of Duty League Announces Season Schedule</a> <a class="list-item toc-h2" href="#toc-2">Quick Bytes</a> <a class="list-item toc-h2" href="#toc-3">Did You Know</a> <a class="list-item toc-h2" href="#toc-4">Quote of the Day</a> </div> <div class="mt-2 -mx-4 sm:-mx-8"> <div id="mmt-7bde16b5-414f-4c99-b45a-259240a801e0"></div><script type="text/javascript" data-cfasync="false">$MMT = window.$MMT || {}; $MMT.cmd = $MMT.cmd || [];$MMT.cmd.push(function(){ $MMT.display.slots.push(["7bde16b5-414f-4c99-b45a-259240a801e0"]); })</script> </div> <article class="article-detail"> <section class="entry-content paragraph"><div><div><div><p><strong>It’s Thursday, November 14th</strong>. Today, the Esports World Cup announced <em>Call of Duty: Black Ops 6</em> as the first title for its 2025 edition, marking a high-profile addition to the upcoming multi-title event. The <em>Call of Duty League</em> (CDL) also revealed its 2025 season schedule, highlighting key tournament dates and the return of international events.</p><p>Also in today’s newsletter: an analysis of Warner Bros. Games’ recent financial struggles, as detailed in its Q3 2024 earnings report, and insights into Nazara and ONDC’s newly launched <em>gCommerce</em> initiative, aiming to reshape in-game monetization for developers. We also cover KRAFTON India’s pre-registration opening for <em>CookieRun India</em>, a localized take on the popular mobile game series, and fresh data from the Entertainment Software Association (ESA) and Xsolla, offering a deep dive into holiday gaming trends and the evolving mobile gaming market.</p><p>If this is your first time reading this, <a href="http://eepurl.com/gee6z5" rel="noopener nofollow" target="_blank">sign up here</a>.</p></div></div><p></p><h2 id="toc-0">Warner Bros. Games Stumbles in Live-Service Shift, Faces $300 Million Writedown</h2><div><div><p>Warner Bros. Games (WBG) embarked on a bold shift in 2024, banking on live-service games to generate sustainable revenue streams. However, the move has been met with disappointing results, leading to a $300 million writedown that has weighed on Warner Bros. Discovery’s profits this year. High-profile releases—including <em>Multiversus</em>, <em>Suicide Squad: Kill the Justice League</em>, and <em>Harry Potter: Quidditch Champions</em>—have struggled to retain their player bases, sparking frustration among fans and forcing the company to confront the challenges of the demanding live-service model, which requires steady content updates and high player engagement.</p><p>Now, WBG appears to be recalibrating, hinting at a return to single-player successes like <em>Mortal Kombat</em> and <em>Hogwarts Legacy</em>, franchises with proven appeal that could offer financial stability in a volatile gaming market. , we examine the missteps behind WBG’s live-service experiment and its path forward.</p></div></div><p></p><h2 id="toc-1">Esports World Cup to Feature Call of Duty: Black Ops 6 for 2025 Edition, Call of Duty League Announces Season Schedule</h2><div><div><p>The Esports World Cup Foundation has officially announced that <em>Call of Duty: Black Ops 6</em> will be a featured title for the 2025 Esports World Cup, marking the tournament’s continued relationship with the <em>Call of Duty</em> franchise. The newly launched game will replace <em>Call of Duty: Modern Warfare</em>, which headlined last year’s event, where Atlanta Faze claimed victory, taking home a $600,000 prize from a $1.8 million pool. Prize details for this year’s Black Ops 6 event are yet to be disclosed, fueling anticipation among fans and competitors alike.</p><p>Simultaneously, the Call of Duty League (CDL) unveiled its 2025 season schedule, bringing notable changes and additions to the competitive format. The season kicks off December 6 with online qualifiers for Major One, followed by four LAN Majors, online qualifiers, and the reintroduction of Minor tournaments. The first Major will be hosted in Europe, marking CDL’s return to the continent since 2020, with Toronto Ultra organizing the event in Madrid from January 30 to February 2.</p><p>The second Major lands in Dallas, Texas, hosted by defending champions OpTic Texas from March 20 to 23. The third Major, set for April 24 to 27, will be managed by Miami Heretics, while details of the fourth Major are yet to be revealed. Minor tournaments—12-team single-elimination events with a $20,000 prize—will be held between qualifiers, allowing teams to gain CDL Points, which are essential for Major seeding and post-season eligibility.</p><p>Concluding the season, CDL Champs will return to Toronto, Canada, though the specific dates have not been released. This expanded format with Minor tournaments and international Majors highlights CDL’s effort to enhance competition and global appeal in the 2025 season.</p></div></div><p></p><h2 id="toc-2">Quick Bytes</h2><div><div><p><strong>Nazara and ONDC Launch New “gCommerce” Platform, Details Remain Unclear</strong></p><p>Nazara Technologies Ltd. and the Open Network for Digital Commerce (ONDC) unveiled plans for "gCommerce," a new initiative aimed at embedding e-commerce within games to offer fresh monetization options for developers. The initiative targets low in-app purchase rates and heavy ad reliance in India’s gaming industry. According to the companies, gCommerce will operate through an affiliate revenue-sharing model, though specifics about its structure remain limited. ONDC’s role suggests potential links to a range of sellers across various product categories, but it’s unclear how this integration will function. The platform is in soft launch, with a broader release expected by Q1 FY26.</p><p><strong>KRAFTON, Devsisters Launch Pre-Registration for India-Exclusive CookieRun</strong></p><p>KRAFTON India, in partnership with Devsisters, has opened pre-registration for <em>CookieRun India</em>, a localized version of the popular <em>CookieRun</em> series tailored for Indian players. The new edition integrates characters inspired by Indian sweets and offers culturally resonant in-game events. With easy-to-learn controls and challenging gameplay, <em>CookieRun India</em> aims to appeal to all ages. “We’re excited to bring an engaging, Indian-themed version of <em>CookieRun</em> to local players,” said Sean Hyunil Sohn, CEO of KRAFTON India. Players who pre-register on Google Play or Apple App Store will receive exclusive rewards, including a special Knight Cookie and 200,000 coins.</p><p><strong>76% of Kids Want Game-Related Gifts This Holiday, ESA Survey Shows</strong></p><p>A new shows that 76% of U.S. children plan to ask for game-related gifts this holiday season, with nearly half specifically wanting gaming consoles. This marks a slight rise from last year’s 72%. Subscription services follow at 43%, with console games and accessories tied at 41%, while in-game currency lags behind at 38%. ESA President Stanley Pierre-Louis highlighted the bonding power of games, noting that 83% of U.S. parents play video games with their children, making games a meaningful way for families to connect during the holidays.</p><p><strong>Xsolla Forecasts $98.7 Billion Mobile Gaming Revenue in 2024, Led by China</strong></p><p> projects that mobile gaming will generate $98.7 billion globally in 2024, with China contributing $34.6 billion. The report anticipates a 6.4% compound annual growth rate, with the market set to reach $118.9 billion by 2027. Asia leads the sector, with revenues expected to rise from $65 billion in 2024 to $77 billion in 2027.</p></div></div><p></p><h2 id="toc-3">Did You Know</h2><div><div><p>Steve Jobs and Steve Wozniak, the visionary founders of Apple, were also the creators behind <em></em>, one of the most iconic arcade games of the 1970s. <em>Breakout</em> was born out of Atari’s quest to develop a single-player version of <em>Pong</em>, a two-player game that had captivated arcades but left solo players wanting.</p><p>In 1975, Atari’s founder Nolan Bushnell approached Jobs with a challenge: create a prototype of a brick-breaking game within four days, offering a bonus for each chip reduced from the initial design. Jobs turned to Wozniak, known for his technical prowess, who not only designed the circuit but innovatively reduced the chip count from Atari’s original design. With just a handful of days and a grueling overnight schedule, Wozniak built a prototype that pushed the boundaries of arcade games.</p><p>The concept of <em>Breakout</em> was simple yet revolutionary: a paddle controlled by the player hits a bouncing ball to break rows of bricks, rewarding players with points as they clear the screen. While Jobs and Wozniak eventually left arcade games for personal computing, <em>Breakout</em> remains a testament to their ingenuity and influence on gaming. This foundational game went on to inspire a generation of arcade and video game developers, making it a milestone in gaming history.</p></div></div><p></p><h2 id="toc-4">Quote of the Day</h2><div><div><div><div><blockquote>Peace cannot be kept by force. 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