WotC Hasbro Earnings Call: WotC/BG3 carrying Hasbro

[Parmandur]

WotC is also making toys / games, yet they are growing, not sure the explanation is this simple

They are making games, very different market than actionnfigures. Notice thst Monopoly is also doing well right now.

 

[mamba]

They are making games, very different market than actionnfigures. Notice thst Monopoly is also doing well right now.

sure, but Hasbro is making a ton of games too, not just Monopoly

EDIT;
Both markets (action figures and board games) are expected to grow year over year too, so it is not simply ‘the economy’ either.

Action Figures Market Size & Growth Analysis Report, 2030

The global action figures market size was valued at USD 8.27 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2030. The growth of the middle class and the increasing target population across the globe are the factors expected to drive market...

www.grandviewresearch.com

“The global action figures market size was valued at USD 8.27 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 8.6% from 2023 to 2030”

Board Games - United States | Statista Market Forecast

The Board Games market in the United States is projected to grow by 9.94% (2022-2027) resulting in a market volume of US$1.87bn in 2027.

www.statista.com

“Total revenue is expected to show an annual growth rate (CAGR 2022-2027) of 9.94%, resulting in a projected market volume of US$1.87bn by 2027”

 

[Parmandur]

sure, but Hasbro is making a ton of games too, not just Monopoly

Yes, but the games aren't what is being creamed in the market, it's plastic toys. And this isn't just Hasbro, physical toys are in a slump.

 

[mamba]

Yes, but the games aren't what is being creamed in the market, it's plastic toys. And this isn't just Hasbro, physical toys are in a slump.

I updated my post above, after some googling, action figures are expected to grow at 8%, board games at 10%

Hasbro’s report does not distinguish between the two, it just lists consumer products and entertainment as categories, both down 20% compared to last year

This isn’t a new trend either, last year it was -20 and -10, after growth of +10 and +50%, so entertainment shrinking a bit in 2022 was probably expected

The economy isn’t worse than last year, so if Hasbro shrinking in 2022 was due to the economy, then that should be factored in, the economy does not really explain another 20% contraction

 

[LuisCarlos17f]

Now it is the time when I start to joke about Elon Musk is going to acquire Hasbro, Disney and Warner.

My opinion is players stop in the hobby if this becomes too expensive. Preteens and teenages haven't too much money to spend, and adults haven't enough time. The collabs or crossovers of Magic: Universe Beyonds is more for fandom collectors than true players.

The videogame BG3 has helped a lot to promote the value of the brand D&D.

The reboot of Hero Quest has worked well if there are several expansions.

Maybe Hasbro and Embracer Group could be interested into working together.

Hasbro wanted to be a new Disney empire and failed, but you shouldn't put all the eggs in only one basket. They know producing media based in the IPs is a good advertising.

Hasbro doesn't want to be too bonded to Disney, Warner or other company.

 

[Paul Farquhar]

WotC is also making toys / games, yet they are growing, not sure the explanation is this simple

When WotC is growing, posters frequently say they must be doing something right (in this thread too), yet if Hasbro is shrinking there is nothing they can do? That is not really adding up

BG3 was ridiculously successful. But there was no way that could have been predicted. It could just as easily been a very expensive flop. Business is far more down to luck, rather than doing it "right" or "wrong". But that's why it matters that Hasbro not be split up. One year it might be D&D carrying the company, the next year it might be transformers carrying D&D.

 

[jgsugden]

I think as long as they don't mess it up, Marvel Set will do fine, but yeah eventually it's going to crash, and it could collapse Hasbro with it.

People have said that for decades without realizing their game: They push for short term gains and trash the IP - then they grab whatever is going to next fill the gap and squeeze it too.

Long Term profits is only more important than short term profits when you don't think you'll control the next short term option.

 

[R_J_K75]

Disney and Hasbro are also big time business partners

I wasn't aware, its not something I follow closely if at all, so youre probably right. Does Hasbro distribute Star Wars and Marvel toys nowadays?

I remember in the mid 1990s probably 1996-97 when neither GI Joe or Star Wars toys were very relevant at the time, a friend of mine and I were walking through a store and saw that Kenner was releasing GI Joe and Hasbro was releasing Star Wars 3-1/2" figures which looked like cheap knock offs from the early 80s lines. It was the oddest thing and I only saw it the one time, so its weird how these deals can work I'd assume.

 

[mamba]

BG3 was ridiculously successful. But there was no way that could have been predicted. It could just as easily been a very expensive flop.

unlikely, Larian releases solid games, but it certainly exceeded expectations

Business is far more down to luck, rather than doing it "right" or "wrong".

it’s a bit of both, sure, but you cannot take credit for the wins and blame the losses on (bad) luck, there is a tendency to do just that however

But that's why it matters that Hasbro not be split up. One year it might be D&D carrying the company, the next year it might be transformers carrying D&D.

from a stock perspective this is probably wrong in that a separate Hasbro and WotC are probably worth more than a combined Hasbro. From a hedging your bets perspective you may be right, but then Hasbo was close to shelving D&D after 4e, so D&D might not have better protection under Hasbro than under a separate WotC either. For Hasbro at the time it was just one of many brands, and an underperforming one at that. For WotC it was one of only a few, that gives it more importance already.

 

[Paul Farquhar]

unlikely, Larian releases solid games, but it certainly exceeded expectations

Larian hasn't released that many games, nothing previously with a huge budget, and nothing previously that has been a massive blockbuster hit. They where far from a sure thing.

If BG3 had launched three weeks later, no one would have noticed it because of Starfield.