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%...

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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.
 

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I find the reads on the situation that this was just some benign mistake by someone who didn't understand what they were doing to be really unconvincing. We know that Wizards needs to make money: Hasbro is using them to prop up the rest of the company and they released a presentation where they wanted to sextuple their profits to make it a $1B Franchise.

All these mistakes feed into each other: the VTT policy being "they don't know how VTTs really work" comes off as willing ignorance, since we know that they want to monetize their own VTT. What did they say you couldn't do? Oh hey, things like animations, which we've heard touted as one of the things they want to be selling for their own VTT. The policy is clearly there to make sure that people aren't offering for free what they want to make people pay for, and thus comes off as a very calculated move.

The same with their moves on the OGL and such. These come off as closing the door behind them and forcing people to move on by removing the 3PP market from the previous editions. Why do this? Well, they need the next edition to succeed big, in a way that 5E has even yet to (which is really, really saying something). Closing the door definitively on the previous edition means you have to move on if you want new published material. It's definitely ill-conceived, but I don't think there is any way to say that they weren't trying to do what they were attempting.

Instead, I think they got pushback in a way they simply didn't expect. For many companies, they can just sort of do this sort of thing and expect their customer base to eventually come back. I don't think they expected sustained pushback on 1.2, which was meant to at least look more benign than the previous draft (not a high bar to clear, admittedly). I think a lot of companies expect people to eventually just "give up" and eventually come back, and there was certainly a push for that, but I think they were seeing a much larger and sustained outrage compared to what they were expecting... and an outlet for it to be expressed in the new playtest.

And for the love of Lathander, can we stop talking about NuTSR? They aren't related to OGL, they are just doing straight-up illegal things. Even Brink on his apology tour could come up with no proof of anything out there harming their brand from OGL. If we want to talk about things not having proof, let's start here.
 

Parmandur

Book-Friend
Do you have a source for that 40,000 or 50,000? I was looking for more info and the best I could find (I think..) was from the DND Shorts leaks which I don't consider worth citing in a discussion given he was wrong on a few major points.
Nothing more reliable than that, unfortunately, but it seems about right. Amd in the context of the broader D&D Profit & Loss, that would seem relatively minor, as Cocks says...particularly if a significant number reup their subscription.
 

Parmandur

Book-Friend
Comparatively minor could be like 50% of subscriptions being cancelled lol, so that's a fairly meaningless claim on his part, and obviously oriented towards shareholder claming after BofA (deez nuts) slapped them.
The comparison he was saying was minor was to WotC general and D&D specific Profit & Loss (which seems totally accurate, of the leaked.numbers are near accurate), though he emphasized thet they took it seriously (hence total capitulation).
 

Jer

Legend
Supporter
Comparatively minor could be like 50% of subscriptions being cancelled lol, so that's a fairly meaningless claim on his part, and obviously oriented towards shareholder claming after BofA (deez nuts) slapped them.
"Comparatively minor" is a great phrase to use with investors. It sounds like you're saying something is "minor" when in fact you're kind of saying the opposite. Being minor when compared to something else usually means it's major within its own context. Like having a twisted ankle is a comparatively minor injury when you've fallen out of a window and have also broken your leg.
 


TLDR version: some clueless manager making stupid decisions is more likely than an attempted takeover of the TTRPG hobby.
I mean, that's hyperbole, but in the other direction lol.

What went on here would have required quite a few people at the management level, and a significant amount of sign-off, as well as involving the management of multiple departments, as well as possibly external law firms and the like.

And don't you, like me, work in a corporate environment? So you know that's the case. Clueless is spot-on - clearly they were clueless, like 100% without any clues whatsoever, definitely not going to find out it was Col. Mustard in the Drawing Room with the Lead Pipe - but "a manager"? Nah this took a village, and you know it did. A village full of prime village idiots, sure, but a village nonetheless.

And let's be clear - this wasn't an "innocent error", not even by Kyle's account - Kyle was very clear that he was involved, but they wouldn't listen to him. For one specific example, he has said he kept pushing for "much higher" (I believe that's an accurate quote) thresholds (plural) for the proposed fees, and that they just wouldn't listen. It was wilfully not listening to people to push an idiotic and damaging idea. Part of being a half-decent manager is not doing stuff when you're clueless about it and listening to people saying "Uh boss...".

It wasn't even a strongly-held idea or genuine idea in the end - and that makes it worse, not better! It's good because they gave up, and I give WotC a thumbs up for that. But I don't let them off just because they didn't go through with it! If your see your neighbour setting up a flammenwerfer to burn down a wasp nest in his back yard, and you talk him down from doing that, you remember that this dude was a maniac with a nutso idea, even when his wife brings you cookies to thank you for convincing her husband not to burn down the neighbourhood in order to destroy some pesky insects and promises he won't do it again.

There are many non D20/OGL games and they were trying to lock down their IP not take over the RPG universe like a Disney villain, though in an admittedly horrible way that would have impacted the community.
I mean, what do you prefer - that they were willing to let off a nuke to that would have vapourized a significant fraction of the RPG industry, and damaged some of the rest, but like, the majority of the industry might have survived?

Does that sound better to you? Because that's a pretty accurate summary of the effects of deleting the OGL 1.0a and enforcing the OGL 1.1. The devastation would have been extensive. What percentage of companies going out of business for a completely unnecessary decision WotC clearly didn't even really mean (given the outcome), would be acceptable to you lol?

Instead of them being a Disney villain, you'd prefer they were compared to a sort of nuke-happy maniac? It's like "Oh they weren't trying to take over the industry, they were just willing to destroy and damage a large part of it!". Because that's fine right? What on earth!

They backed down because they were stupid and wrong. Maybe we stop trying to rewrite history to make out that it wasn't that bad?
The comparison he was saying was minor was to WotC general and D&D specific Profit & Loss (which seems totally accurate, of the leaked.numbers are near accurate), though he emphasized thet they took it seriously (hence total capitulation).
Agreed. My point is that given how much WotC/D&D make, and that I'd imagine Beyond has significantly south of 1m subs (based on other subscription services registered members vs. subscribers), even losing half of them wouldn't really impact WotC overall that much - the vast majority of profits likely remains from books, merch, and so on. So we have no idea - 40k-50k actual cancellations over an issue on a sub service is pretty nuts though - that's the sort of numbers that make even a service with millions of subs immediately sit up and take note - because it's very hard to find an issue which makes people actually cancel! The vast majority of cancellations of any service are because people don't care/aren't using it, not because they care, but but are angry.

(The only subs I've cancelled out of "negative care" rather than "not using" in the last few years have been Netflix and Beyond - I was already unsub'd from WoW when Blizzard had their crisis or they'd be on the list too. And I'm pretty sure I'm more prone to cancelling than most!)
 



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