WotC Hasbro's CEO Reports OGL-Related D&D Beyond Cancellations Had Minimal Impact

Hasbro held a quarterly earnings call recently in which CEO Chris Cocks (who formerly ran WotC before being promoted) indicated that the OGL controversy had a "comparatively minor" impact on D&D's revenue due to D&D Beyond subscription cancellations. He also noted that D&D grew by 20% in 2022 (Magic: the Gathering revenues grew by an astonishing 40% in Quarter 4!)

WotC as a whole was up 22% in Q4 2022.

Lastly, on D&D, we misfired on updating our Open Gaming License, a key vehicle for creators to share or commercialize their D&D inspired content. Our best practice is to work collaboratively with our community, gather feedback, and build experiences that inspire players and creators alike - it's how we make our games among the best in the industry. We have since course corrected and are delivering a strong outcome for the community and game.

 

[Oofta]

Seemingly yes, the typical "they must make profit" argument when they have a revenue of what, 6 billion?

Now where's my violin...

Making a profit is what companies do. It's their obligation to the people that invested in the company by buying stock.

There are far, far worse companies out there. Nobody dies if they can't afford what WOTC is selling. Don't like a product? Don't buy it.

 

[Ulorian - Agent of Chaos]

Seemingly yes, the typical "they must make profit" argument when they have a revenue of what, 6 billion?

Now where's my violin...

Must you do this on every thread that even tangentially mentions WotC or Hasbro? It's tiresome. If you're not happy with WotC, don't buy their products. Please let those of us who want to read about D&D and RPGs in peace.

 

[Scribe]

Must you do this on every thread that even tangentially mentions WotC or Hasbro? It's tiresome. If you're not happy with WotC, don't buy their products. Please let those of us who want to read about D&D and RPGs in peace.

Consider the topic of the thread you are in currently lol.

 

[Scribe]

Making a profit is what companies do. It's their obligation to the people that invested in the company by buying stock.

There are far, far worse companies out there. Nobody dies if they can't afford what WOTC is selling. Don't like a product? Don't buy it.

 

[Umbran]

Oh yes, quite comparable.

Pardon me for putting it in terms of normal human magnitudes.

Revenue gives you an idea of how big the business is, but doesn't tell you about its health, or how successful they are. Not that Hasbro is in the gutter at this point, but the point still stands that the revenue number isn't what lines the pockets of execs.

 

[Clint_L]

The statement is true (I assume). Presenting is as proof that the OGL debacle had no real financial impact when it only included up until the end of their fiscal year (Dec 26, 2022) while most of the OGL issues were after that however is misleading.

They didn't present it as proof of anything.

 

[Umbran]

Getting snarky isn't going to end well.

 

[Oofta]

So on a scale of 1 to Pharma Bro making life saving medicine unaffordable to millions in order to maximize profits, you acknowledge WOTC is on the low end of the scale.

So why complain about a large company making money? Don't like their product, don't buy it I get. I don't buy modules because they aren't worth it to me. I don't post on every thread about modules about how pointless they are.

EDIT: didn't see the mod post I'll drop it.

 

[Clint_L]

I think folks are unclear on what an earnings call is. Yes, they report out on earnings, etc. But they also discuss other events, forecasts, and so on. They don't cut off discussion at Dec. 26 or whatever the quarterly date was. Since the OGL situation was very public and potentially impacts their projections, they are bound to address that.

What they absolutely cannot due is intentionally try to mislead investors. Snarf or others could probably give you a list of reasons why that would be a big no-no. For example, intentionally trying to imply that the OGL controversy had minimal impact because it is not reflected in Q4 earnings that mostly cut off before the OGL controversy would be super problematic.

 

[Morrus]

Well, looks like WotC is continuing putting out misleading statements to the public.

This isn't a statement to the public, it's an earnings call to investors, and it's pretty heavily regulated.