Netflix Buys WB Games But Sells Off Its Own Studios First

Netflix logo over Mortal Kombat scene highlighting Netflix acquisition of WB Games and gaming studios

By Jon Scarr

When we covered Netflix’s deal to acquire Warner Bros. yesterday, the focus was on HBO, DC films, and the mountain of iconic entertainment IP sliding under the Netflix banner. That alone was a wild headline. But now that the dust has settled, one detail has become far more interesting for anyone who pays attention to games.

Netflix is not only buying the movie and TV empire. Warner Bros. Games is coming with it, confirmed quietly by a spokesperson after barely being mentioned in any of the official messaging. As someone who grew up button mashing through Mortal Kombat rounds and digging into the Arkham series, that reveal hit me harder than the streaming angle did.

The timing makes it even more curious. A day before this acquisition news, Netflix sold Spry Fox back to its founders. Earlier this year it shut down or offloaded other internal studios. So while Netflix is bringing a heavyweight publisher into its ecosystem, it has been quietly shrinking its own gaming footprint in the background.

That mix of buying big while backing away from smaller teams raises a new question worth looking at: what exactly does Netflix want gaming to be? And more importantly, how does Warner Bros. Games fit into a company that barely talked about games while announcing one of the biggest entertainment deals ever? Suddenly, Netflix’s gaming strategy looks way more complicated than it did a week ago.

The Gaming Division Netflix Forgot to Mention

For a deal this massive, you would expect Warner Bros. Games to be front and centre. Instead, it was almost invisible. During the official conference call, the Mortal Kombat logo flashed on a slide for a moment and then disappeared. That was basically it for the gaming side of the announcement.

Netflix executives spent their time talking about movies, HBO originals, production capacity, and global entertainment strategy. Rocksteady, NetherRealm, TT Games, Monolith, and Avalanche never came up out loud. Only after journalists followed up did a Warner Bros. spokesperson confirm that the games division was absolutely included in the transaction.

For anyone who follows the industry, that silence is strange. These studios are not small support teams. They built some of the biggest franchises in modern gaming. Mortal Kombat is still a tournament staple. The Arkham series set the tone for superhero action. TT Games has made LEGO gaming a household fixture for years.

Yet as the news broke, it felt like games were the least important piece of the story. Hearing that confirmed after the fact gave me that eyebrow raise moment. The one where you think, “Did they really just skip over that?” It set the tone for everything else. Warner Bros. Games is now inside Netflix, but the messaging treated it like an afterthought, not a pillar. That choice tells us something about how Netflix sees gaming today, even if Netflix has not quite said it out loud yet.

Mortal Kombat fighters preparing for battle, used to highlight Netflix’s acquisition of Warner Bros. Games and its major gaming franchises

Buying Heavyweights While Letting the Small Teams Go

The strangest part of this story is the timing. Netflix now owns publishers tied to Mortal Kombat, Batman, LEGO, and other blockbuster franchises. Yet one day before that news, it sold Spry Fox back to its founders. Not long ago, other internal teams were closed, absorbed, or simply allowed to disappear without much fanfare.

If you follow Netflix’s gaming path, this is not the profile of a company building a stable of first party studios from the ground up. It looks more like Netflix is stepping away from nurturing smaller creative teams while absorbing an already established publisher that has decades of proven hits behind it.

Warner Bros. Games is built on long running IP and heavyweight brands. Netflix’s game division has been built on mobile experiments, streaming features, and slow adoption. Seeing those two realities collide raises some honest questions. Why invest so heavily in one direction while pulling back in another?

As someone who watched Google shut down Stadia Games and Entertainment before pivoting to bigger licensing deals, this gave me slight déjà vu. It is easier to buy Rocksteady or NetherRealm than it is to grow the next Rocksteady or NetherRealm. Owning these studios gives Netflix global prestige, but the smaller exits suggest it still has not figured out how it wants to support game development internally.

The move feels like Netflix chose legacy power over cultivation. Whether that is smart or short sighted is something we are about to find out.

Spirit Crossing artwork from Spry Fox, referencing Netflix selling the studio back to its founders
Spirit Crossing, the next game from Spry Fox, which Netflix just sold back to its founders.

WB Games Is Inside Netflix But Missing From Its Own Narrative

For a company that spent billions to secure Warner Bros. Games, Netflix barely acknowledged its presence. The official language centred on film, premium television, and production capacity. WB Games did not show up as a pillar of the future. It was treated more like a line item on a spreadsheet than a creative engine with millions of fans.

That silence leaves a gap. WB Games is a publisher built on Mortal Kombat, Arkham, LEGO, Middle earth projects, and licensed worlds. If Netflix really sees games as part of its future, you would expect more excitement around inheriting that catalog and the teams behind it. Instead, it almost felt accidental.

This raises another question worth watching. Did Netflix buy WB Games because it wants to build a bigger gaming business, or because the division was part of a bundled package that came with HBO and Warner Bros. studios? The messaging so far leans toward the latter, which feels surprising when you look at the history and success of WB’s game output.

As someone who has seen Netflix talk more about fitness apps and party games than premium action releases, this disconnect stands out. They now own teams capable of building hits on the level of Arkham City or Mortal Kombat 1. Yet Netflix’s voice around games still sounds like it is pitching casual mobile offerings.

WB Games is in the room, but it is not being celebrated. Whether that changes once the deal closes, or simply remains quiet, will shape how we judge Netflix’s intentions with gaming in the years ahead.

Warner Bros. Games logo with Batman, Game of Thrones, and Mortal Kombat characters representing Netflix’s acquisition of the publisher

The Studio Moves That Might Matter More Than the Headlines

Most people are talking about HBO shows, DC movies, and streaming power. The bigger story for gamers sits in the background. Netflix now owns studios that shaped major pieces of console history, but we still do not know how it plans to use them, or if it plans to change anything at all.

That uncertainty might end up being the real shift worth watching. If Netflix keeps WB Games operating as it always has, we might see business as usual. Mortal Kombat continues. LEGO adaptations roll out. Monolith and Rocksteady stay on their lanes. If Netflix pushes WB Games toward subscription bundles or cloud integration, that could reshape how these series reach us.

Either path would be significant. One preserves the legacy status of these studios. The other starts blending them into Netflix’s wider service ecosystem, the kind that could one day mirror Game Pass or Apple Arcade. As someone who remembers the slow ramp of cloud play on platforms like Stadia, Luna, and GeForce Now, watching Netflix decide what it wants WB Games to be feels like a familiar crossroads.

This deal is not just a content grab. It is a chance for Netflix to either step into gaming with purpose or continue dipping a toe in the water without committing. Both outcomes have huge implications. If you care about Mortal Kombat, Arkham worlds, or blockbuster action projects, this is the part of the acquisition worth keeping an eye on.

Batman from Rocksteady’s Arkham series representing Warner Bros. Games’ franchises acquired by Netflix

Watching the Quietest Part of the Deal

Looking back at the announcement, it is hard not to notice how the loudest talking points came from the movie and television side. That is understandable when you buy HBO, DC, and many of the biggest shows on the planet. Still, for anyone who watches games as closely as film, the quiet inclusion of WB Games feels like the part that could shape Netflix’s future more than anything else.

Netflix now owns studios that know how to build hits across generations. It has proven worlds to lean on, but it also has a history of walking away from teams it could have supported. As someone who grew up with Mortal Kombat cabinets and long Arkham nights, that contrast sticks with me. The deal is signed and the gaming side is already on the books, yet the messaging around it barely made a whisper.

So here we are, watching Netflix buy one of the most successful publishers in gaming while stepping back from smaller studios at the exact same time. Whether this becomes a turning point for Netflix or just another folded chapter, time will tell. What I do know is that the industry tends to overlook the quiet details until they become loud ones. WB Games might be that detail.

If you care about big franchises, cloud direction, or how games live inside entertainment giants, this is the story to follow if you care about where Netflix’s gaming future goes. We will be watching to see if Netflix treats WB Games like a studio powerhouse or a silent asset sitting behind its streaming throne.

What do you think Netflix will do with WB Games? Drop a comment, share your thoughts, and let’s chat about where this deal could lead.