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.

 

[OB1]

Let's also not lose sight of the fact that WotC and D&D brought 2 million more people into the hobby last year. That's 2M more potential customers for all the 3PPs out there.

 

[mamba]

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.

How does this add up? MtG is about 80% of WotC, so if that grew by 40%, why is the overall number 22% and not 36% or so?

 

[OB1]

How does this add up? MtG is about 80% of WotC, so if that grew by 40%, why is the overall number 22% and not 36% or so?

Because MtG didn't grow at 40% for the year, just Q4.

And I also just saw that Hasbro stock jumped 5% today after the report, even though their 2022 numbers were below expectations.

 

[dave2008]

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

Now where's my violin...

Well some companies have revenue of 6 billion and don't make a profit!

 

[dave2008]

How does this add up? MtG is about 80% of WotC, so if that grew by 40%, why is the overall number 22% and not 36% or so?

The D&D number (20%) was for the whole year and the 40% for MtG was only for Q4. Maybe MtG's Q1-Q3 didn't perform as well.

 

[Scribe]

Well some companies have revenue of 6 billion and don't make a profit!

Indeed possible, but not likely applicable in this case unless they had a reeeeeeeeeeeeeeeally dire 4th quarter.

 

[Parmandur]

With the combined efforts of my entire side of the hobby, numerous YouTubers and social media influencers garnering hundreds of thousands (millions?) of shares and views, tens of thousands of cancelled subscriptions - if everything we have isn't the slightest blip on their financial radar, then I would like to side with products, publishers, and creative teams who value our engagement and business.
This was a corporate level brush-off of the whole of the fanbase who were impacted by this debacle.
They don't deserve my fandom.
And their products have been substandard for years.

Tens of thousands are relatively minor in comparison to several million, yes, particularly when as Cocks says many are resubscribing.

 

[mamba]

Let's also not lose sight of the fact that WotC and D&D brought 2 million more people into the hobby last year. That's 2M more potential customers for all the 3PPs out there.

what do you base that number on? DDB users? That does not really measure new players…

 

[mamba]

Because MtG didn't grow at 40% for the year, just Q4.

both numbers were for Q4

 

[mamba]

The D&D number (20%) was for the whole year and the 40% for MtG was only for Q4. Maybe MtG's Q1-Q3 didn't perform as well.

I was not looking at the 20% for D&D. I was looking at MtG 40% in Q4, WotC overall 22% in Q4