D&D General WotC Continues D&D's Advance To Digital First Brand

It's been apparent for some time that Dungeons & Dragons is moving towards a digital-first brand, centered around D&D Beyond, accompanied by a larger a shift into IP and lifestyle property.

D&D has had cartoons, toys, comics, and so on for decades, so this is not new, but the focus on these IP-based licenses appears to be gowing.

In Hasbro's latest earnings call, CEO Chris Cocks notes that the company -- by which he is referring to Hasbro, WotC, and their digital studio teams -- "delighted more than 1 billion kids, families and fans, secured partnerships that further underwrite future growth, advanced our evolution to a digital-first play and IP company and delivered record profits for our shareholders."

As we enter 2026, we view playing to Win and more importantly, the execution behind it by our Hasbro, Wizards of the Coast and digital studio teams as a clear success. Despite market volatility and a shift in consumer environment, we returned this company to growth in a meaningful way. We delighted more than 1 billion kids, families and fans, secured partnerships that further underwrite future growth, advanced our evolution to a digital-first play and IP company and delivered record profits for our shareholders.

As previously mentioned, this isn't really new information, but it is informative to see it clearly laid out by Hasbro's CEO. In the last couple of years, the company has had massive success with Baldur's Gate 3, and critical (if not commercial) success with the movie Honor Amongst Thieves. At least two D&D TV shows are currently in development--one from HBO as a sequel to Baldur's Gate 3, and another from Netflix, also set in the Forgotten Realms. In the eanrings call, Cocks notes that they have "top-tier creative partners across more than 60 active entertainment projects."

Digital sales currently make up 60% of D&D's revenue. With digital-exclusive expansions being sold on D&D Beyond, a robust virtual tabletop integration, and the bringing in of the larger third-party D&D content creators as partnered content, D&D's move towards digital-first is well underway. While there is no indication that the physical books will go away, they are slowly becoming secondary or collector's items rather than the primary product.

 

[aco175]

Should I hope that 'record profits for our shareholders' means that they will produce stuff people like, or is there some fuzzy math going on? I guess I like some of the stuff they have been doing, but most is not for me these days. The movie was ok and another series might be good. I do not play MagictG anymore or video games like Baldur's Gate so I'm guessing that is where most of the cash is from.

 

[Johnsy]

Is “digital first” just marketing speak? I’d be concerned if they de-incentivise in person, non-digital play.

I really liked all the components, maps and extras that came with the hero’s of the borderlands set. And I’m definitely a physical first customer. So I’m sad if they do less of this.

 

[bedir than]

Should I hope that 'record profits for our shareholders' means that they will produce stuff people like, or is there some fuzzy math going on? I guess I like some of the stuff they have been doing, but most is not for me these days. The movie was ok and another series might be good. I do not play MagictG anymore or video games like Baldur's Gate so I'm guessing that is where most of the cash is from.

No, the fact that revenue and profits are up for Wizards generally means that they are producing things that more people like. If they were producing things people didn't like revenue would go down

 

[mamba]

No, the fact that revenue and profits are up for Wizards generally means that they are producing things that more people like. If they were producing things people didn't like revenue would go down

not entirely, the profit margin for digital products is higher, so there is a range in which they could still make more money while having lower sales. Not that they definitely are in that range...

 

[Morrus]

not entirely, the profit margin for digital products is higher, so there is a range in which they could still make more money while having lower sales. Not that they definitely are in that range...

To be clear, he said revenue, not profit.

 

[bedir than]

not entirely, the profit margin for digital products is higher, so there is a range in which they could still make more money while having lower sales. Not that they definitely are in that range...

revenue is also up

it would be an amazing business model to have both revenue and profits go up while making products that a plurality of fans dislike -- basically impossible.

 

[Morrus]

Is “digital first” just marketing speak? I’d be concerned if they de-incentivise in person, non-digital play.

It means exactly what it says on the tin. The digital experience is the 'primary' version of the game.

 

[Morrus]

revenue is also up

it would be an amazing business model to have both revenue and profits go up while making products that a plurality of fans dislike -- basically impossible.

That's not entirely true. There is a universe (not that I'm saying they're doing that) where they focus on a minority who are willing to pay more. Luxury products are full of that. Most people don't buy a Ferrari or a Rolex, but they don't need most people to.

 

[bedir than]

That's not entirely true. There is a universe (not that I'm saying they're doing that) where they focus on a minority who are willing to pay more. Luxury products are full of that. Most people don't buy a Ferrari or a Rolex, but they don't need most people to.

but a plurality to majority of fans of luxury brands do like what they sell

what mamba seems to be suggesting is that there is a strong fan dislike of product that somehow still generates positive P&L