Summary

  • NetherRealm Studios has reportedly laid off around 50 employees, including its mobile team.
  • The layoffs at NetherRealm Studios come after Warner Bros. Discovery faced challenges with Suicide Squad: Kill the Justice League.
  • The developer is set to announce Year 2 plans for Mortal Kombat 1 at San Diego Comic-Con, following the addition of new fighters.

Mortal Kombat developer NetherRealm Studios has reportedly laid off at least 50 employees, including all the members of its mobile team. NetherRealm Studios is currently working on Mortal Kombat 1, the 12th mainline entry in the legendary fighting game series.

The video game industry has seen numerous mass layoffs in 2024, many of which affected studios that were owned by heavyweights such as Embracer Group, Microsoft, and Tencent. According to a publicly available tally maintained by journalist Mike Straw, nearly 11,000 people in the industry have already been let go this year, with the most recent losses coming from the Warner Bros. Games umbrella.

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At least 50 staff members have been laid off from NetherRealm Studios, the developer in charge of the Mortal Kombat and Injustice franchises, Insider Gaming reported. To put this into perspective, NetherRealm Studios has between 51 and 200 employees, according to the company's LinkedIn profile. Among the people affected by the layoffs was quality assurance analyst Tony Lazzara, who revealed in a statement that the studio's entire mobile team has also been dissolved. NetherRealm Studios' latest mobile game is Mortal Kombat: Onslaught, a beat 'em up RPG released last October that is set in an alternate timeline.

NetherRealm Studios Layoff Numbers

NetherRealm Studios Lay Offs 50 People
  • At least 50 people

In a February earnings call, Warner Bros. Discovery CFO Gunnar Wiedenfels told investors that the game side of the company was expected to face difficulties following the disappointing performance of Suicide Squad: Kill the Justice League by Rocksteady Studios. Warner Bros. Discovery admitted later in May that it took a $200 million loss on the title that currently has a Mixed or Average rating on review aggregate site Metacritic. Suicide Squad: Kill the Justice League suffered from a variety of technical issues at launch, and many found the gameplay to be repetitive and dull.

Aside from NetherRealm and Rocksteady Studios, Warner Bros. Games owns Avalanche Software, the developer of Hogwarts Legacy, and TT Games, which is best known for its wide variety of LEGO titles. The company also has studios based in Boston, Montreal, New York, San Diego, and San Francisco.

NetherRealm Studios is scheduled to hold a brief panel at the San Diego Comic-Con on July 26, just days after Takeda Takahashi becomes available in Mortal Kombat 1. The developer is expected to reveal its Year 2 plans for Mortal Kombat 1, which has added five main fighters and four Kameo fighters since the game launched last September.

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Mortal Kombat 1
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8 /10
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Released
September 19, 2023
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WHERE TO PLAY

SUBSCRIPTION
DIGITAL
PHYSICAL
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Welcome to a new era of Kombat. NetherRealm Studios ushers in a new era of the iconic fighting franchise with a total reset that changes the entire world as we know it. Following the thrilling climax of Mortal Kombat 11, the all-powerful Fire God Liu Kang has created a New Era in the hope of bringing peace to Earthrealm and beyond. Through the series' most cinematic story mode yet, you'll be reintroduced to a cast of legendary warriors as you've never seen them before. Expect twists on classic friendships and rivalries, as well as new backstories that will change everything you think you know about your favorite Kombatants. Discover a host of new offline and online game modes as you master a revitalized fighting system that boasts bone-crunching Fatal Blows, defensive Breakers and the most creatively vicious Fatalities yet.

ESRB
M For Mature 17+ Due To Blood and Gore, Intense Violence, Strong Language
Developer(s)
NetherRealm Studios
Publisher(s)
Warner Brothers Games
Franchise
Mortal Kombat
Genre(s)
Fighting
Metascore
84