Warner Bros. San Diego Canceled Mario Kart-Style Racer Inspired by Nintendo Success

WB San Diego's Canceled 'Moonlight' Kart Racer: A Missed Rival for Mario Kart on Nintendo Switch In late April, Warner Bros.

made headlines by shutting down multiple game development studios, including the teams behind Player First Games and the soon-to-be-offline brawler MultiVersus.

However, before these cuts took place, internal efforts were underway at Warner Bros.

San Diego to develop a Mario Kart-inspired racing game.

The project, codenamed 'Moonlight,' was intended to bring the publisher's rich stable of intellectual properties into the competitive kart racing genre, aiming to compete with Nintendo's acclaimed Mario Kart series—long the industry leader on platforms like the Nintendo Switch. According to respected gaming journalist Colin Moriarty, reporting via his Sacred Symbols podcast and citing a source formerly connected with WB San Diego, the studio's early pandemic project began with high ambitions.

"The development team explored multiple titles for the kart racer, including 'WB Racers' and 'XDR (Cross Drift Racers),'" Moriarty relayed.

The unannounced game would have featured a roster packed with Warner Bros.' most recognizable characters, such as Adventure Time's Finn and Jake, Tom & Jerry, Scooby-Doo, and many more.

The design direction favored stylized graphics and utilized Unreal Engine 5, signifying a modern visual and technical foundation. Despite its promise, Project Moonlight encountered a series of hurdles that hampered its progress.

Sources noted that persistent staff reshuffling and internal debates on monetization strategies—specifically, whether to launch as a free-to-play title or as a premium paid product—delayed development.

Ultimately, these challenges led to the decision to drop all planned console versions, including the possibility of a Nintendo Switch release, with developers considering a PC launch as a first step. Frustration reportedly grew within the team as their companion studio, Player First, was allowed to launch MultiVersus twice, while the Moonlight team never saw a public release.

"There was considerable frustration among Moonlight's developers, who felt disadvantaged in comparison to the handling of MultiVersus," said Moriarty, summarizing his source's comments. The industry has witnessed several major brands seeking to emulate Nintendo’s kart racing formula, with recent examples including Disney Speedstorm and DreamWorks All-Star Kart Racing.

However, none have managed to match the enduring popularity or critical acclaim of Mario Kart on the Nintendo Switch and other Nintendo platforms. Confirmation of the deep impact caused by the studio closures and project cancellations came just weeks after it was announced that MultiVersus would be ending online services on PC, Xbox, and PlayStation platforms on May 30, 2025.

Local multiplayer for MultiVersus will remain available for those who have already downloaded the game. While Warner Bros.

'Moonlight' will not see the light of day, its story highlights the competitive nature of the kart racing genre and the continued influence of Nintendo’s iconic franchises in shaping publisher ambitions worldwide.

Mario Kart Nintendo Mario Warner Bros WB San Diego Moonlight Kart Success