Business Discussion

[ashockney]

Your turn to add some FACTS

Alrighty!

I've taken this pretty far today/this weekend. I'd like to throw this out to others. I'd still encourage you to stay away from OPINIONS if at all possible(we'll get there eventually).

For now, we need some more facts, particularly about WoTC and as this is an RPG community, perhaps the product specifics, partnerships, and licensing associated with D&D.
Product catalog?
Employees?
Sales info?

Please site references wherever possible. All my info so far has come from the hasbro and wizards websites, product catalogs, investor information, and the Hasbro 2009 annual report.

 

[Glade Riven]

Yeah- nothing against Hasbro per se, but I think something like D&D has to be ready to operate with lower profit margins than a big company like Hasbro is willing to accept for an extended period. The push for a new edition, when it comes, will likely come from the suits that don't realize how divisive new editions are to the fan base, based on the fact that new editions sell more product (at least for a while).

Eh, they've delt with worse. There is a reason I am no longer involved in the Transfans community, and to go into details would probably illicite a moderator warning.

 

[kitsune9]

After Hasbro buys Microsoft, they will combine it with this division to form Microtel. Microtel will eventually leverage an economic assistance program in South America into a virtual takeover of the continent. Later, as mankind heads into space, Microtels space operations division will become a stellar power in it's own right. That power is called VoidCorp!

That's right folks...Hasbro will spawn VoidCorp!

That doesn't sound like a good thing to me....unless it drives shares up.

 

[Dedekind]

From Hasbro's most recent 10-K:

"The increase in gross profit in dollars was more than offset by increased product development and sales and marketing expenses related to investments the Company made in both core brands and its digital initiative related to its Wizards of the Coast subsidiary;..."

Maybe DDI? Or maybe just M:TG on Xbox?

Also from the 10-K:

"The Company seeks to make its brands relevant in all areas important to its consumers. Brand awareness is amplified through immersive traditional play, digital applications, publishing and lifestyle licensing and entertainment experiences presented for the consumers’ enjoyment. The Company’s focus remains on growing core owned and controlled brands, developing new and innovative products which respond to market insights, offering immersive entertainment experiences which allow consumers to experience the Company’s brands across different forms and formats, and optimizing efficiencies within the Company to reduce costs, increase operating profits and maintain a strong balance sheet. "

I think this fits directly in with DDI (though probably more M:TG). So, the online initiative might be pushed by Hasbro. More likely, however, is that WotC said "we want to put this online" and HAS said "sounds great, here is a bunch of money to get it off the ground."

 

[Mark CMG]

Product catalog?

I think EN Worlder and owner of FLGS Games Plus thalmin has been adding the product catalogs he gets as a retailer to the General Discussion forum of EN World for years if someone wishes to do a search and link to those posts he has made for reference.

 

[ggroy]

Hasbro holiday sales miss | Reuters

Hasbro holiday sales miss

Fri, Jan 14 2011
By Brad Dorfman


CHICAGO (Reuters) - Hasbro Inc (HAS.O: Quote, Profile, Research, Stock Buzz) said quarterly sales dropped unexpectedly as demand in the United States petered out at the end of the holiday selling season, and the No. 2 U.S. toy company's shares initially fell more than 5 percent.


The news comes days after smaller rival LeapFrog Enterprises Inc (LF.N: Quote, Profile, Research, Stock Buzz) slashed its 2010 earnings forecast after demand for its toys petered out late in the holiday season, too.


The comments from LeapFrog and Hasbro mirror those of many retailers, whose sales slowed late in the holiday season after shoppers flocked to stores to grab bargains right after Thanksgiving.


Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz), for example, said toy sales were one of the weaker areas in December.


The slowdown in December sets up a tough environment for toy manufacturers in the first part of 2011 and could lead to stagnation in prices of toy company shares, Gerrick Johnson, analyst at BMO Capital Markets, said


"Retailers are going to continue to be cautious. They are going to have some inventory to work through due to the slow December," Johnson said.


Hasbro, which makes toys and games under brands like Nerf, Playskool and G.I. Joe, said it now expected to report fourth-quarter sales of $1.3 billion, down from $1.4 billion a year earlier. Analysts on average forecast $1.4 billion, according to Thomson Reuters I/B/E/S.


Weakness in the United States and in Canada could not be offset by strength internationally, Hasbro said.


Hasbro did not say why sales slowed in December.


But Johnson said that retailers may have gotten overconfident after strong sales in November and raised prices too much in December. Also, cold, snowy weather in the latter part of December hurt sales at some retailers. Consumers who bought toys in November may have chosen to stay home instead of venturing out in frigid temperatures for "incremental" purchases around Christmas, Johnson said.


Hasbro also estimated only a modest increase in 2010 earnings per share from the $2.48 it reported for 2009, excluding a 14-cent tax benefit in the first quarter of 2010.


Analysts on average had forecast full-year earnings of $2.69, excluding one-time items.


The company said it did expect sales and earnings to increase in 2011.
Hasbro shares were down 91 cents at $43.74 on Friday morning on Nasdaq after falling to as low as $42.54. Rival Mattel Inc (MAT.O: Quote, Profile, Research, Stock Buzz) fell 33 cents to $23.72.


(Additional reporting by Viraj Nair in Bangalore and Jessica Wohl in Chicago, editing by Dave Zimmerman)

 

[shadzar]

WotC just isnt pulling it weight, causing sales to be down for all of HASBRO. Because of WotC, HASBRO sales are down $200 million.

 

[ashockney]

Thank you Dede, Mark, and ggroy for those insights. Others? More of this is good...

 

[Dungeoneer]

Hasbro holiday sales miss | Reuters

Hasbro holiday sales miss

Fri, Jan 14 2011
By Brad Dorfman


CHICAGO (Reuters) - Hasbro Inc (HAS.O: Quote, Profile, Research, Stock Buzz) said quarterly sales dropped unexpectedly as demand in the United States petered out at the end of the holiday selling season, and the No. 2 U.S. toy company's shares initially fell more than 5 percent.

...

The slowdown in December sets up a tough environment for toy manufacturers in the first part of 2011 and could lead to stagnation in prices of toy company shares, Gerrick Johnson, analyst at BMO Capital Markets, said.

This is the most interesting fact about Hasbro/WotC that I've read recently. I wouldn't be the slightest bit surprised if the recent changes in the production schedule stemmed directly from this earnings report.

Sales down during Christmas during a major recession? That could definitely make a major corporation freak out and start reshuffling its product lines.

Alas, I must spread xp before I can give any more to ggroy.

 

[ExploderWizard]

A business that does not want to make money does not exist. It's not like Gygax just gave the game away - he sold it just like everyone else.

You seem to think a "true artisan" who loves the game would not be interested in making money off of it. You also seem to think that the developers who made <editions you don't like> don't care about D&D and were just trying to shill it out for cash. You are incorrect on both accounts.

When speaking of making money it is important to discuss how much is enough.

Paizo is making money. I assume this is case because they are still in business and if they were losing money no love of the game would save the company.

It is not true that someone who loves the game and the hobby has to have no interest in earning any money. The critical issue is in what that lover of the game is or isn't willing to do with the game in order to make even more money.

I believe that there are designers at WOTC that do love the game. The big difference is that these people are not the ones who decide how much money the game needs to generate in order to be worth producing.

In a nutshell, those who care about and love TTRPGs will produce and sell them for as much money as they can. Those who care about and love $$, will do whatever it takes to make more of it regardless of what that does to the product in form or function.