Warner Bros closes three development studios, locks Monolith's Nemesis system behind patent

Alfonso Maruccia

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In context: Monolith was founded in 1994 by Bryan Bouwman, Brian Goble, and several others, when when DOS was still the operating system of choice for PC games. Over the years, the studio developed successful series such as Blood, No One Lives Forever, F.E.A.R., Shogo: Mobile Armor Division, and, of course, Middle-earth: Shadow of Mordor. Thanks to a sudden "strategic change in direction," Warner Bros has shuttered the studio.

Warner Bros recently confirmed the closure of three gaming studios, including Middle-earth developer Monolith Productions. The studio is notable for designing a technology capable of providing unique personalities to enemies and NPCs. However, WB "locked" the system away behind a patent, even though it will likely remain unused.

The publisher just confirmed the closure of Monolith Productions, Player First Games, and Warner Bros Games San Diego. Monolith's most recent fame came from the two action-adventure games based on J. R. R. Tolkien's Legendarium: Middle-earth: Shadow of Mordor and Middle-earth: Shadow of War. Critics praised both titles for the Nemesis system, a technology designed to procedurally generate orc characters featuring unique traits and relationships with the player's character.

Monolith and Warner Bros invested in the Nemesis system so much that the publisher decided to patent the technology in 2016. The patent describes methods for managing NPCs that can remember previous interactions with the player and react accordingly in subsequent encounters. The patent expires on August 11, 2036, so no other developers can use the Nemesis system, and WB has nothing in the works either.

However, Monolith was working on a Wonder Woman game. It was a single-player experience powered by the Nemesis system. It announced the game in 2021, but the project is dead because of the studio's shutdown. People in the industry are now praising the unusable Nemesis technology and criticizing Warner for funding the development of a highly advanced AI gaming system and then freezing it for years to come. It sounds like a move right out of Disney's playbook.

Gaming journalist Scott Robertson noted how Monolith pioneered a one-of-a-kind system for the procedural generation of unique enemy interactions and showed his contempt for Warner Bros actions.

"[A few years later] WB took that from them, patented it, and then closed their studio. Fu** them," Robertson said.

The closure of Monolith, Player First Games, and Warner Bros. Games San Diego resulted from a very rocky period for WB's gaming business. Chief Executive and President of Warner's Global Streaming and Games JB Perrette told Bloomberg that the quality of too many new releases missed the publisher's expected results. The company took a $200 million loss for the Suicide Squad: Kill the Justice League project alone.

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I'm so confused:
Rock Steady games - releases Suicide Squad: Kill the Justice League and loses $200 million and was universally rated as crap - Kept
Monolith - releases good games and creates some incredible gaming technology's, is in the middle of creating their next game - closed down

Sometimes I wish I could be a fly on the wall of the rooms these meetings happen in, I struggle to believe the suits are THAT tone deaf... surely?
 
My hazy memory is that shadows of Mordor was a lot of fun and then the next game they tried to nickel and dime you and I ignored it and forgot they existed.

Shame as they clearly had talent and could make a good game.
 
I'm glad that NZ does allow patents for such stuff. NPC can remember interactions wow flag = 1
ok /s sure a lot more complicated than that.
Suppose just have to pay a LLM company

Been promised that stuff for ages - independent agents ,consequences etc

oh you are back Flag = 2
 
"Corporate acquisitions are good for business."

You see why the rise of these mega-studios is HORRID for the industry as a whole. At this point, the best thing that could possibly happen would be one of Ubi/Activision/EA falling apart so their individual studios can be free again.
 
WB addiction to service games is fascinating. Failing over and over again, they keep dumping money into it, forcing its decent studios that can make other game to waste their time trying to make another suicide squad.
An EA official recently said that Veilguard failed because it lacked live service elements. I guess they sincerely believe that the live service is like a secret button for a successful game.
The situation with WB gaming business looks like the most obvious mismanagement.
They cannot make 1000 fortnights that will each earn billions. If they even checked how many other big live service games flopped in the last few years, maybe they would abandon this idea.
 
I'm so confused:
Rock Steady games - releases Suicide Squad: Kill the Justice League and loses $200 million and was universally rated as crap - Kept
Monolith - releases good games and creates some incredible gaming technology's, is in the middle of creating their next game - closed down

Sometimes I wish I could be a fly on the wall of the rooms these meetings happen in, I struggle to believe the suits are THAT tone deaf... surely?
Monolith was working on Wonder Woman for a long time. I think WB realized that the game is not going to be made, not in a shape where it can return the ivestment.
 
Someone needs to start investigating all of these companies. How is WB still in business? I ask the same thing about Disney constantly, but still. With the amount of investments WB are engaging in, that have eventually, presumably, become tax write-offs from all the layoffs and disastrous product launches transpiring lately, one would almost be forgiven for thinking they are being paid to damage their product stack. Maybe all of the executives are getting ready to do a fire sale and need a good excuse to sell off their stocks, but first they have to "accidentally" be negligent with their IP. That way, it doesn't look like they are engaging in outright fraud.

There's only so many times you can assume incompetence, before you start to think it's on purpose...
 
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