Warcraft did not do so well in the United States but it did awesome in China. A sequel could still happen but if it does happen then there is also a big possibility that the company will lose a lot of money.
A huge budget was shelled out for the first Warcraft movie. Even though it did well in China, international success may not be enough to save it from losing money because of that big budget.
Warcraft initially earned over $430 million and 89% of that profit came from other countries, outside the United States. China owned a big chunk of that with $221 million. According to reports, if "China didn't end up grossing what it did, this would have been an utter failure," says analyst Jeff Brock.
The movie took home a big budget of $160 million and it was indicated that the movie will lose about $15 million. When it comes to the financial concerns, there are matters that need attention to. But director Duncan Jones already has ideas for the sequels. He even mentioned that there are forty minutes worth of shots that have not been aired in the movie. But he conceded in saying that the Warcraft sequel will still depend on the success of the first movie.
Duncan Jones has a lot of source material to choose from and the war has been going on for thousands of years. He can choose from WarCraft books like the Rise of the Horde or possibly focus on other characters that have not yet been introduced in the first movie. He can also choose from Aaron Rosenberg's novel where Lothar arrives in Lordareon.
A financial loss would be an indicator of a green or red light. However, a Warcraft 2 movie sequel can still happen but it will just have to live on a lesser budget.