In a seismic shift for the entertainment and gaming industries, streaming titan Netflix is poised to become the new home for blockbuster franchises like Harry Potter and Mortal Kombat. This follows its colossal $82.7 billion (£61.9 billion) deal to acquire Warner Bros., a move that will dramatically reshape Netflix's position in the video game market.
The Deal That Changes the Game
Confirmed by Netflix, the acquisition grants the company ownership of Warner Bros.' vast empire. This includes its legendary film and television studios, the HBO Max streaming service, and priceless intellectual property ranging from the Wizarding World to Game of Thrones. The only major exclusion is Discovery Global, which will separate to form a new entity.
Critically for gamers, a Warner Bros. spokesperson confirmed to Game Developer that the deal encompasses Warner Bros. Games and all its subsidiary studios. This means Netflix will soon hold the reins to some of the most famous names in development:
- Avalanche Software – creators of the smash-hit Hogwarts Legacy.
- NetherRealm Studios – the legendary team behind the Mortal Kombat and Injustice series.
- Rocksteady Studios – acclaimed developers of the Batman: Arkham games.
- TT Games – the masterminds of the popular Lego video game series.
- WB Games Montréal – the studio behind Gotham Knights.
The immediate consequence is that any confirmed future titles, most notably the highly anticipated Hogwarts Legacy 2, will be released under the Netflix banner, assuming regulatory approval is granted. The deal is expected to be finalised in the third quarter of 2026.
A New Future for Warner's Gaming Focus
This acquisition comes after Warner Bros. Games recently streamlined its operations, narrowing its focus to just four core franchises: Harry Potter, Game of Thrones, DC Comics, and Mortal Kombat. While studio projects are largely shrouded in secrecy, industry rumours suggest NetherRealm is working on Injustice 3, Rocksteady has returned to the Batman universe, and WB Games Montréal is planning a Game of Thrones console title.
The only officially confirmed upcoming game is Lego Batman: Legacy Of The Dark Knight from Traveller’s Tales, slated for release next year. The big question now is how Netflix's ownership will influence these studios' trajectories. The streaming giant could potentially leverage these teams to create games based on its own wildly popular IP, such as Stranger Things or Squid Game.
Uncertain Impact and Broader Implications
It is difficult to predict the precise impact on game development. While the consolidation of two corporate giants often raises concerns, a potential upside could be Netflix's reputation for funding ambitious passion projects. However, given its relatively restrained investment in original gaming content so far, this generous approach may remain reserved for its film and television divisions.
Another significant unknown is the future of the wider DC Studios universe. Co-CEO James Gunn has only just begun his tenure, with the Superman film due this year, and has teased plans for integrated video games. It remains unclear whether Netflix's new ownership will alter these plans or affect Gunn's role.
For now, the gaming world watches and waits. If approved, this £61.9 billion deal will not only redraw the map of media conglomerates but could fundamentally alter where and how we play the next generation of major video game franchises.
