The game's release has faced criticism due to J.K. Rowling's views on gender identity, which has affected its reception within the community.

While no release date has been set for Hogwarts Legacy 2, it is estimated to launch between 2026 and 2027, coinciding with the anticipated HBO Original Harry Potter series.

The leadership transition at Warner Bros. Games includes the departure of David Haddad, the president of Warner Bros. Interactive, after a challenging year for the division.

The decision to cancel the expansion is reminiscent of past decisions in the gaming industry, such as the scrapping of single-player DLC for GTA 5, although Hogwarts Legacy does not feature an online component.

Warner Bros. has announced the cancellation of a planned expansion and Director’s Cut for Hogwarts Legacy as part of a significant restructuring of its video game division.

Despite Hogwarts Legacy selling over 34 million copies since its release in 2023, the company has opted to focus on its key franchises, including Harry Potter, Mortal Kombat, DC, and Game of Thrones, to drive profitability and growth moving forward.

The planned expansion was expected to add 10 to 15 hours of new quests and activities, but concerns about whether the additional content would justify the price led to its cancellation.

This cancellation includes both the paid DLC and a definitive edition of the game, as the content was deemed insufficient in value.

Avalanche Software, the original developer of Hogwarts Legacy, was collaborating with Rocksteady Studios on this expansion, which aimed to restore a storyline involving a companion character that was cut from the original game.

The restructuring comes in the wake of disappointing performances from other titles, such as Suicide Squad: Kill the Justice League and the relaunch of MultiVersus, prompting a reevaluation of the gaming division's strategy.

In a letter to shareholders, Warner Bros. described the previous year as 'disappointing' for its games segment, highlighting a 29% decline in revenue in the fourth quarter compared to the previous year.

The success of Hogwarts Legacy has been identified as a critical factor in Warner Bros.' strategy to revitalize its games division and return to profitability by 2025.