WotC Some Takeaways From Hasbro's Latest Reports

Hasbro's latest quarterly conference call included a number of interesting details regarding Wizards of the Coast and Dungeon & Dragons.

CEO Chris Cocks reported a successful quarter, with the 2024 Player's Handbook selling 50% more copies than anticipated.

He also talked about D&D Beyond, the official D&D online platform. With 19 million registered users, he reported that a massive 60% of D&D's revenue was direct to consumer sales--as recently as 2022 when Hasbro purchased D&D Beyond from Fandom, that figure was 0%.

However, WotC's revenue was down 5% from the same period last year--and this despite Magic: the Gathering reporting a 3% increase. Tabletop sales overall were up 2%, but digital sales have dropped by a whopping 19%. Cocks attributed WotC's drop to the high peak caused by Baldur's Gate 3 last year.

• WotC down 5%
• Magic: the Gathering up 3%
• Tabletop up 2%
• Digital sales down 19%
• Total Hasbro gaming down 6%
• Toys down 10%
• Entertainment down 17% (not counting the eOne sale)

Hasbro's profit for this quarter was $223.2 million; the same period last year saw a $171.1 million loss.

 

[Hussar]

Yeah, and considering their manipulation of things to influence the numbers (by Hasbro, not you), I'm not shocked. Its always as much of a shell game as people can get away with.

Where else would you report the profits or losses of a digital product than under digital sales?

Not everything is a conspiracy.

 

[dave2008]

Yeah, and considering their manipulation of things to influence the numbers (by Hasbro, not you), I'm not shocked. Its always as much of a shell game as people can get away with.

what, in your mind, benefit to hasbro is there to moving BG3 to digitial sales? All the numbers (gains and losses) are still there? What do you feel they are hiding and to what benefit.

Basically I don't necessarily feel they are trying to "influence the numbers," but I don't really care. The numbers I want to know TTRPG sales (up 2%) are all I really care about.

 

[Scribe]

what, in your mind, benefit to hasbro is there to moving BG3 to digitial sales? All the numbers (gains and losses) are still there? What do you feel they are hiding and to what benefit.

I think putting that into Digital Sales instead of outright Licensing Royalists obfuscates where the value is with the property.

 

[Selas]

The numbers I want to know TTRPG sales (up 2%) are all I really care about.

I thought it was up 3%

Edit: nvm, that was MTG

 

[dave2008]

I thought it was up 3%

Edit: nvm, that was MTG

IDK, but from the OP:

However, WotC's revenue was down 5% from the same period last year--and this despite Magic: the Gathering reporting a 3% increase. Tabletop sales overall were up 2%, but digital sales have dropped by a whopping 19%. Cocks attributed WotC's drop to the high peak caused by Baldur's Gate 3 last year.

• WotC down 5%
• Magic: the Gathering up 3%
• Tabletop up 2%
• Digital sales down 19%
• Total Hasbro gaming down 6%
• Toys down 10%
• Entertainment down 17% (not counting the eOne sale)

 

[mamba]

Where else would you report the profits or losses of a digital product than under digital sales?

licensing, where it belongs, since it is not Hasbro’s product

 

[mamba]

what, in your mind, benefit to hasbro is there to moving BG3 to digitial sales?

hiding how things are really doing

 

[dave2008]

hiding how things are really doing

But the numbers are all there, does the portion of that which is digital sales really matter that much? Isn't the bottom line what is most important?

And that "hiding" makes thinks look good one year for digital sales and bad the next. How exactly does that help Hasbro?

 

[mamba]

But the numbers are all there, does the portion of that which is digital sales really matter that much? Isn't the bottom line what is most important?

there is more of interest than just the bottom line, like (perceived) trends in your different areas. Toys are down, but MtG and D&D are up with good growth in the transition to digital sounds a lot better than toys are down, MtG is essentially flat and D&D was saved by an unexpected licensing windfall

And that "hiding" makes thinks look good one year for digital sales and bad the next. How exactly does that help Hasbro?

yes, you can only hide the full extent for so long, but companies aren’t exactly known for their long term strategic thinking. Sometimes a good quarter for the CEO to hit a goal and get a huge bonus is all it takes to override that.

It can also hide a bad year if the next is good, the truth does not necessarily need to get revealed eventually

 

[Hussar]

licensing, where it belongs, since it is not Hasbro’s product

But, since licensing is not actually called out - then what would be the option here? I mean, D&D is licensed out to like a BAJILLION different places. You expect them to split out everything like Fantasy Grounds, Roll20, the various D&D game apps, and who knows how many other digital licensing deals they've got from stuff that they directly sell? What would be the point?

They are not hiding anything here. There's really no conspiracy. If it's sold digitally, and it bears the D&D name on it somewhere, then it comes under digital sales. This isn't exactly rocket science. And, considering they've been doing it this way for the better part of a decade, it seems a bit weird to make it an issue now.

But, yeah... it's WotC trying to obfuscate and hide and be dishonest...