Warner Bros. Discovery (WBD) has announced that it intends to prioritize the development of free-to-play and live-service games in the future, despite Hogwarts Legacy’s success being the best-selling game of 2023.

Speaking at the recent Morgan Stanley Technology, Media, and Telecom Conference, Warner Bros Discovery gaming boss J.B. Perrette, revealed that the company’s strategy is to expand its presence in the free-to-play and live service games sector in order to avoid the “volatile” ups and downs of big-budget game releases. He stated:

We’re doubling down on games as an area where we think there is a lot more growth opportunity that we can tap into with the IP that we have and some of the capabilities we have on the studio where we’re uniquely positioned as both a publisher and a developer of games.”

The company experienced remarkable success in 2023, with Hogwarts Legacy emerging as the industry’s top-selling game of the year on a global scale. However, the subsequent release of Suicide Squad: Kill the Justice League did not meet the expectations, resulting in a setback for Warner’s gaming division. This stumble posed a significant challenge for the company, as it faced a difficult year-over-year comparison in its first financial quarter. The pressure stemming from this setback ultimately compelled the company to make a shift in its long-term strategy.

Moving forward, Perette shared that the company’s plan entails focusing on its core franchises and transitioning some of them into the mobile and free-to-play space. Additionally, WBD intends to continue investing in live-service games that offer long-term engagement and generate revenue through in-app purchases. By implementing these strategies, the company aims to achieve greater financial stability. Furthermore, Perette teased that WBD will be releasing some new mobile free-to-play games this year. It is worth noting that WBD’s plans to expand into new areas do not imply that it will cease producing single-player AAA games.

“Rather than just launching a one-and-done console game, how do we develop a game around, for example, a Hogwarts Legacy or Harry Potter, that is a live-service where people can live and work and build and play in that world in an ongoing basis?”

Although there is no confirmation on which IPs will be making their way as free-to-play, it seems the Hogwarts Legacy universe may possibly get a lot bigger in the future.