4E, a pimple on the butt of Hasbro?

[BradfordFerguson]

OK, so the investment world is upside-down and I'm scouring various stocks for opportunities. So I wonder, what level is HASbro trading and what have they said publicly about the financial success/failure of 4th Edition D&D?

I read the quarterly earnings transcript of 7/21/2008 for Hasbro (available at seekingalpha.com) and there is no mention by Hasbro company management nor any questions by financial analysts following Hasbro about 4th Edition...? I find this surprising since if 4th edition only sells 2 million PHBs, DMGs, and MMs combined, that would still be $35 million dollars in revenue. There was mention and questions about a TCG that is hot in Japan, but no mention of 4E. So I wonder,

Is management for Hasbro so out of touch with 4th Edition that they fail to see the financial impact it will have?

Are relations poor between Wizards of the Coast (which is a subsidiary of Hasbro) and Hasbro?

Perhaps profit margins are so low that management and analysts don't bother to mention 4E?

 

[Mouseferatu]

Perhaps profit margins are so low that management and analysts don't bother to mention 4E?

This.

D&D isn't even WotC's biggest-selling product (that would, IIRC, be Magic: the Gathering). And WotC is a tiny division of HASBRO.

D&D's numbers aren't even big enough to appear on HASBRO's reports, and except for its value as a property to license out to others, I'm not even certain that HASBRO corporate is even fully aware of D&D.

 

[Sigurd]

Hard to hear

While I'm sure the people who work with D&D as their job focus really care about it, Hasbro has a lot of other fish to fry too.

I wonder what returns they get from D&D licenses for movies and what not vs. actually selling the game. They are a big company with shareholders to please - returns are what they want.

Marvel & DC are making a killing with comic book movies. It might not be too far fetched to see movies based on famous modules or monsters. Given the right circumstances the Mind Flayer and a hit movie would be more important, in a given year, than the rest of D&D, any edition.

Welcome to the corporate world.


Sigurd

 

[Inferno!]

Marvel & DC are making a killing with comic book movies. It might not be too far fetched to see movies based on famous modules or monsters. Given the right circumstances the Mind Flayer and a hit movie would be more important, in a given year, than the rest of D&D, any edition.

There's all kinds of potential there, IF done properly. Unfortunately, I've never seen anything to make me believe it would be done properly.

 

[thundershot]

I'd love to see Hasbro do a toyline of Transformers Crossovers: Dungeons & Dragons. Take a bunch of iconic D&D monsters and have them transform into robots. They're doing it for Star Wars and Marvel... why not something they actually OWN instead of just license?

Could be interesting, at least...



Chris

 

[garyh]

I'd love to see Hasbro do a toyline of Transformers Crossovers: Dungeons & Dragons. Take a bunch of iconic D&D monsters and have them transform into robots. They're doing it for Star Wars and Marvel... why not something they actually OWN instead of just license?

Could be interesting, at least...



Chris

As a Transformers fan, I heartily approve of this idea. I also enjoy GI Joe, so why don't they make some 3 3/4" D&D figures, too? The first wave could have a human fighter, dwarven cleric, hafling rogue, elven ranger, dragonborn paladin, and tiefling warlock.

 

[Ranger REG]

I'd love to see Hasbro do a toyline of Transformers Crossovers: Dungeons & Dragons. Take a bunch of iconic D&D monsters and have them transform into robots. They're doing it for Star Wars and Marvel... why not something they actually OWN instead of just license?

Could be interesting, at least...



Chris

Transforming creatures like Gelatinous Cube and Beholder, yes.

Transforming iconics like Mialee and Drizzt, no.

 

[Khuxan]

Transforming creatures like Gelatinous Cube and Beholder, yes.

Transforming iconics like Mialee and Drizzt, no.

Mialee can transform between man and woman!

 

[evilgenius8000]

U.S. and Canada segment net revenues for the quarter were $821.0 million, an increase of $47.5 million or 6% compared to $773.5 million in 2007. The growth in revenue is attributable to STAR WARS, PLAYSKOOL, NERF, FURREAL FRIENDS, BABY ALIVE, trading card and board games, including TRIVIAL PURSUIT and SCRABBLE. Additionally, TRANSFORMERS and LITTLEST PET SHOP continued to contribute significantly to the segment in the quarter. The U.S. and Canada segment reported an operating profit of $131.9 million, compared to $122.8 million in 2007.

When your revenue is almost $1 billion in a single quarter, even if they sold 2 million 4E books it would be pretty insignificant ($79,980,000 minus the cost of printing, marketing, and WotC's payroll & operation costs). However, I don't think Hasbro is going to cut the brand loose; considering the fact that they can count on fans who buy every D&D book printed, it's kinda like guaranteed revenue. Also, note the part that I bolded... They might be including D&D in that.

 

[Paradigm]

When your revenue is almost $1 billion in a single quarter, even if they sold 2 million 4E books it would be pretty insignificant ($79,980,000 minus the cost of printing, marketing, and WotC's payroll & operation costs). However, I don't think Hasbro is going to cut the brand loose; considering the fact that they can count on fans who buy every D&D book printed, it's kinda like guaranteed revenue. Also, note the part that I bolded... They might be including D&D in that.

$80m is 8% of $1b, so I think that might be pretty significant.