Wizards of the Coast Says That China Tariffs Will Have Minimal Impact on D&D

Sacrosanct said:

If they've licensed them to other companies, I don't think they can speak for the impact to those companies. They can only speak to what they create and distribute themselves.

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Sacrosanct said:

Which is so weird to me, seeing as how I live in Oregon, where one of our top products is lumber...

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Zaukrie said:

I was asking this board where they are made, I guess I wasn't clear.

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Dire Bare said:

It's the smaller publishers I worry about. Which in the TTRPG space, is everybody other than WotC/Hasbro. Hasbro might be okay, but this is bad for the industry. Companies are going to go under, stores might close, folks are going to lose jobs. It's already happening.

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Clint_L said:

To clarify, Dungeons and Dragons products are probably okay.

Hasbro is screwed if this continues. They're a toy company, and most of their product is injected molded plastic, which almost all comes from China and can't be done in the US any time soon.

Hasbro was already struggling, prior to their most recent report, anyway. So if this situation is prolonged, its viability comes into question. Which then raises a lot of questions about the future of WotC.

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On tariffs, we acknowledge the challenge posed by the current global trade environment. While no company is insulated, Hasbro is well-positioned. Our U.S. Games business benefits from largely digital or domestic sourcing, maintaining low COGS and healthy margins. We make many of our board games just up the road in East Longmeadow, MA, not far away from where Milton Bradley printed his first board games in the 1860s.
Wizards has low tariff exposure with sub-$10M in expected duty for the year. Most of our domestic supply is produced in North Carolina and Texas, with the balance from Kyoto, Japan. Our Licensing business is primarily digital or minimum guarantee-based, with manageable partner exposure.
While our Toys segment faces higher exposure, we’re responding proactively. Our asset-light sourcing model means we can rapidly shift production to help mitigate tariff impacts.

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bedir than said:

They talk about this.



tl;dr - the stock wouldn't be up 10+% if tariffs were a problem.
But also, they're joining an industry-wide call for 0% tariffs globally on toys and games

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WinningerR said:

Did Chris actually say, “D&D is unlikely to be significantly impacted by the tariffs,” or did he say, “the only D&D products produced outside the US are boxed sets?”

I’m guessing the latter because I find it hard to believe the former. Paper costs are certain to rise due to the tariffs, perhaps significantly. There is also going to be a lot more demand for US-based printing, which is likely to drive up printing costs as well. I think it’s too early to say whether WotC could absorb these increased costs; there is just too much uncertainty. Under the current tariff regime, there is real chance the new intro set is simply non-viable.

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bedir than said:

"Wizards has low tariff exposure with sub-$10M in expected duty for the year."

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