Rocksteady Faces Major Layoffs Amid ‘Suicide Squad’ Failure

Rocksteady, the developer of “Suicide Squad: Kill the Justice League,” has faced significant layoffs.

According to Eurogamer, the studio’s quality assurance (QA) team has been particularly hit hard, with its workforce reduced by more than half, from 33 to just 15 employees. While other departments have also been affected, the full extent of the layoffs has not been disclosed yet.

The poor sales of “Suicide Squad: Kill the Justice League” have been directly linked to the layoffs at Rocksteady, as sources told Eurogamer.

The game, released in February 2024, has failed to meet commercial expectations, leading to a significant impact on Rocksteady and its parent company Warner Bros. Discovery’s gaming revenue. Early reports claimed that Warner Bros. Discovery has faced the loss of over $200 million due to the game’s underperformance.

In the last financial earnings call, WB Games reported that its gaming revenue dropped by 41% year-over-year due to the game’s poor sales.

The game’s player base has also dwindled dramatically since its launch, with a 99% drop in peak concurrent players, from 13,459 at launch to just around 100 in the most recent 24-hour period. Even though the game has tried to revitalize itself with new content like Mrs. Freeze, it hasn’t impacted these numbers. As a result, a report from Bloomberg’s Jason Schreier indicated that Warner Bros. Discovery was cutting back its support for the game. He wrote on X that Rocksteady was only providing “barebones support” now.

Previously, rumors circulated with some sources suggesting that the studio might face closure or further downsizing. Some even claimed that Warner Bros. Discovery was considering selling its gaming division to Microsoft.

However, despite the challenges, there are indications that Rocksteady is planning to return to its roots. Bloomberg reports suggest that the studio is working on a “director’s cut” version of “Hogwarts Legacy” and may pitch a new single-player game in the future.

There are also rumors that Warner Bros. is allegedly developing a new Batman video game. However, it’s not part of Rocksteady’s Arkham series; this game will be a standalone title set in the same universe as Matt Reeves’ recent film, “The Batman.” Given Rocksteady’s pedigree in delivering high-quality single-player experiences, it’s likely that they will play a key role in its development.