ICv2 Reports Disappointing Year For Hobby Games Channel: TTRPGs Down, D&D Declines 30%

According to ICv2, 2023 was a tough year for hobby game sales. The US and Canada market increased by just 1%, which was less than the rate of inflation, growing from $2.86 billion in 2022 to $2.89 billion in 2023.

The hobby game sales channel is defined as specialist game and card stores--it doesn't include Amazon, direct sales, etc. It does include Kickstarter.

Top Hobby Channel TTRPGs (2023)

1. Dungeons & Dragons (WotC)
2. Pathfinder (Paizo)
3. Cyberpunk Red (R. Talsorian)
4. World of Darkness (Renegade Game Studios)
5. Starfinder (Paizo)
6. Warhammer 40K (Cubicle 7)
7. Marvel Multiverse Roleplaying (Marvel)
8. Kobold 5E Books (Kobold Press)
9. Call of Cthulhu (Chaosium)
10. Pirate Borg (Free League)

The only two categories to grow in 2023 were collectibles and miniatures. All other categories--board games, card games, and roleplaying games--were down. ICv2 reports a 30% hobby store sales decline for Dungeons & Dragons specifically, citing the impending new edition and lackluster movie performance, and the tail end of a pandemic-fuelled high; they also report that while the OGL crisis of last year impacted some lifestyle gamers, newer players as a whole were oblivious to the situation. The other important element ICv2 mentioned was D&D's increasing move to digital, which impacted retail sales.

Older D&D players, says ICv2, are also migrating to other games, with Pathfinder as one of the major beneficiaries.

The last 6 years has seen much larger growth rates--partly fuelled by the pandemic--ranging from 10% to 30%. 2022 saw a 7% growth over 2021. Despite the small increase, 2023 represents the 15th year of growth for the overall market. ICv2 does predict a market decline in 2024, though.

ICv2 conducts periodical surveys and speaks to publishers, distributors, and retailers, along with publicly available company information and Kickstarter data.

 

[TrippyHippy]

I am betting that the sales numbers reported are not including those from Drive Thru or other sources. Any way to verify this with ICv2?

I don’t think drivethrurpg sales really amount to more than a fraction of what is made via retail circuits, however.

 

[Parmandur]

I don’t think drivethrurpg sales really amount to more than a fraction of what is made via retail circuits, however.

Why do you suspect that? The evidence of independent RPG creator behavior and availability suggest .ost make their money on DriveThru or Kickstarter, not hobby stores.

 

[bmfrosty]

Why do you suspect that? The evidence of independent RPG creator behavior and availability suggest .ost make their money on DriveThru or Kickstarter, not hobby stores.

I figure it's a vicious circle. Local game store only carries a few RPGs because anything small can't make money, and anything small can't get big enough to make money for the FLGS without being in the FLGS.

I don't know how to fix that.

 

[Wolfpack48]

I don’t think drivethrurpg sales really amount to more than a fraction of what is made via retail circuits, however.

I bet they actually do more business than retail circuits. Also, much less overhead so profits are better.

 

[Jd Smith1]

I figure it's a vicious circle. Local game store only carries a few RPGs because anything small can't make money, and anything small can't get big enough to make money for the FLGS without being in the FLGS.

I don't know how to fix that.

Brick and mortar are dying. The future is in PDFs.

 

[Jadeite]

The future is in PDFs.

For D&D, the future is in live services. At least the future WotC Hasbro wants.

 

[MNblockhead]

Brick and mortar are dying. The future is in PDFs.

As pure retailers, sure. But as venues for play, I think there is a future. I know you prefer to play online, but I enjoy playing in person as well as online. I like being a part of a local community of gamers. Most FLGS just don't do a good job at building profitable venues that are good at this for TTRPGs. It used to be that play space was subsidized by retail sales, but I think FLGS need to turn this model on its head.

The downside to this, however, is that I worry it may create hobby haves and have nots. I mean there always have been. But until fairly recently, if a FLGS offered play space, you didn't have to pay to go, hand out, play, meet new people, etc. I just don't see how most FLGS will survive on a pure retail model. Upgrading the in-store play experience and charging for it seems to be the future. One I welcome, but I realize I'm fortunate to be able to afford it.

 

[payn]

As pure retailers, sure. But as venues for play, I think there is a future. I know you prefer to play online, but I enjoy playing in person as well as online. I like being a part of a local community of gamers. Most FLGS just don't do a good job at building profitable venues that are good at this for TTRPGs. It used to be that play space was subsidized by retail sales, but I think FLGS need to turn this model on its head.

The downside to this, however, is that I worry it may create hobby haves and have nots. I mean there always have been. But until fairly recently, if a FLGS offered play space, you didn't have to pay to go, hand out, play, meet new people, etc. I just don't see how most FLGS will survive on a pure retail model. Upgrading the in-store play experience and charging for it seems to be the future. One I welcome, but I realize I'm fortunate to be able to afford it.

There is one store thats been around for decades in the twin cities. It's the Source and it does it by catering to many fandoms. Comics, board games, war games, minis, TTRPG, Managa, Anime, etc...

The only other shops beyond strip mall closets, are ones that feature play space and food. In these shops its clear they want folks hanging out doing their thang. The retail shop is barely adequate, but the space and invitation of it is welcoming.

You are correct, the future FLGS needs to either diversify product, or they need to build a community.

 

[aramis erak]

I wonder is there is any realistic way to determine how D&D sales are actually doing, across forms and outlets. Like, it matters if dead tree versions dip but digital versions bump, or if VTT sales increase while Beyond sales dip, etc.

buy a share of HasBro and get the annual financials...

I am betting that the sales numbers reported are not including those from Drive Thru or other sources. Any way to verify this with ICv2?

no. ICv2 gets their numbers from retailers and distributors only. And those numbers are voluntary...

 

[mamba]

buy a share of HasBro and get the annual financials...

they publish them, and they do their best to obscure that stuff instead of making it transparent. That still won’t tell you e.g. DDB vs VTT vs print