WotC “Atomic Arcade”— WotC’s New Digital Platform?

WotC has applied for a trademark for “Atomic Arcade”. The application was made late last month, and covers:

• Downloadable electronic games to be used in connection with computers, console gaming devices, and wireless devices
• Fantasy role playing games, board games, trading card games, and collectible toy figures
• Entertainment services, namely, providing online computer games and interactive multiplayer online computer games via a global network

Earlier in the year, rumours spread regarding WotC’s plans for its own virtual tabletop platform (VTT) following a survey in which they gauged opinions and allegedly showed off graphically rich 3D screenshots.

“TSDR” is the application’s status which reads:

LIVE/APPLICATION/Awaiting Examination
The trademark application has been accepted by the Office (has met the minimum filing requirements) and has not yet been assigned to an examiner.

Status:
New application will be assigned to an examining attorney approximately 6 months after filing date.

 

[Umbran]

Look also at the 9month ending numbers

Ooh. Yes!

Nine months ended Sep 26, 2021:
Consumer Products
Net Revenues: 2,625.7 million
Operating profit: $260 million
Operating margin: 9.9%

W&D
Net Revenue: $1,008.7 million
Operating Profit: $462.3 million
Operating margin: 45.8%

So, while Q3 was good for consumer products, so far for the year, W&D has far better margin, and more absolute profit.

 

[ReshiIRE]

It's going to be fascinating to see what this actually is.

I don't think 'arcade' is a bad word, but 'atomic' is a strange one. Makes me think this isn't really D&D related - Arcane Arcade would work better... but that's already XP to Level 3's stream channel.

 

[Vince_Snetterton]

I have found one Reddit comment that was throwing around D&D and all affiliate products are about 13% of all of WOTC's revenue. I don't believe anything on Reddit, but I can't find an official financial source that breaks down WOTC's revenue streams. Bottom line, even though DBB and Roll20 money might be easy money, it is still a fraction of a fraction of a fraction in the Hasbro empire, and if I was running a company like theirs, I would want to know exactly where Hasbro is heading with this platform, and likely making a pitch to Hasbro to buy up that affiliate.

 

[darjr]

@Vince_Snetterton so your guessing?

I’m guessing you’re wrong.

I’m guessing that WotC and Hasbro looked at the amount from those licenses, especially those from DDB and realized how much they are leaving on the table.

 

[Umbran]

I’m guessing you’re wrong.

I think he overstates the "fraction of a fraction" - but I suspect Magic: the Gathering is still the big player at W&D.

I’m guessing that WotC and Hasbro looked at the amount from those licenses, especially those from DDB and realized how much they are leaving on the table.

The more I think of it, the more I think the "Arcade" is probably more literal. It isn't about D&D, specifically - and that shows in the name. It is about all the properties Hasbro owns (including those in Consumer products) having a home for their digital sides.

 

[pukunui]

Do we think this has anything to do with the game studio WotC set up with James Ohlen? Aren’t they working on a sci-fi game? “Atomic” suggests sci-fi to me.

 

[darjr]

@Umbran maybe. It is a guess on my part. And really it would be a constellation of things to convince them to do this.

 

[darjr]

Do we think this has anything to do with the game studio WotC set up with James Ohlen? Aren’t they working on a sci-fi game? “Atomic” suggests sci-fi to me.

Maybe? Computer/Mobil game downloads are in the list.

 

[LuisCarlos17f]

I guess the name is for a pinball game by Tommy in the 80's, an iconic age where the old and new is mixed strangely.

Maybe I am wrong but my theory is 2022 will be a wild year with a lot of news about merger and acquisitions, and franchises going from one side to ther. Maybe even big fishes in the entertaiment industry will fall, and their IPs being acquired by Hasbro.

 

[eyeheartawk]

Didn't Wizard's purchase a video game development studio? It seem to me they are accumulating technological expertise. Makes sense for a broader push to more directly control their IP. Control the DDB type market, make your own D&D videogames etc. I think it'll be a good while before we see anything real concrete. Given they are filing the trademark now and that's the first we've heard of it I really would not be surprised if we don't really see this kick-off until 2024 with D&D 5.5 or whatever it's called. That would seem like a natural on-ramp for a bunch of these initiatives.

As the report shows, WOTC is a substantially higher margin business than pretty much the rest of Hasbro. From a Hasbro corporate side perspective it would make sense to make some substantial investments in your highest margin business as it would generate the highest likeliest return, dollar for dollar.