The Quebec government continues to support local developers.
The initial $1.5 million grant is part of a larger $63 million initiative promised to WB Games Montreal for the company to add 100 jobs and buy new equipment by 2018.
The jobs at WB Games Montreal will pay a yearly salary of about $70,000 to employees who are around 30 years old. WB Games Montreal currently employs 325 full-time staff.
"By the end of five years, it'll be 2018, there should be 500 people here and I think we'll be one of the best-known studios in the world," Warner Brothers Interactive president Martin Tremblay said.
Quebec premier Pauline Marois said the video game industry in Montreal is one of the most important markets in the world for production, and the most acclaimed in Canada.
Last week, Ubisoft announced plans to add 500 jobs to its Montreal studio network by 2020, thanks in part to a $9.9 million grant from the Quebec government.