WotC Hasbro Bets Big on D&D

During today's 'Hasbro Fireside Chat', Hasbro's Chris Cocks, chief executive officer, and Cynthia Williams, president of Wizards of the Coast and Digital Gaming mentioned D&D, and about betting big on its name. This was in addition to the Magic: The Gathering discussion they held on the same call.

The following are rough notes on what they said.

D&D Beyond

• Leaning heavily on D&D Beyond
• 13 million registered users
• Give them more ways to express their fandom
• Hired 350 people last year
• Low attrition

What’s next for D&D

• Never been more popular
• Brand under-monetized
• Excited about D&D Beyond possibilities
• Empower accessibility and development of the user base.
• Data driven insight
• Window into how players are playing
• Companion app on their phone
• Start future monetization starting with D&D Beyond
• DMs are 20% of the audience but lions share of purchases
• Digital game recurrent spending for post sale revenue.
• Speed of digital can expand, yearly book model to include current digital style models.
• Reach highly engaged multigenerational fans.
• Dungeons and Dragons has recognition, 10 out of 10
• Cultural phenomenon right now.
• DND strategy is a broad four quadrant strategy
• Like Harry Potter or Lord of the Rings or Marvel
• New books and accessories, licensed game stuff, and D&D Beyond
• Huge hopes for D&D

What is success for the D&D Movie

• First big light up oppourtunity for 4th quadrant
• Significant marketing
• They think it’ll have significant box office
• It has second most viewed trailer at Paramount, only eclipsed by Transformers
• Will be licensed video games, some on movies
• Then follow up other media, TV, other movies, etc.
• Bullish on D&D.

 

[Charlaquin]

Probably a number they don't see much value in making public.

From the bullet summary it sounded like their strategy for D&D is “a four-quadrant strategy,” not the movie specifically. Maybe I misunderstood.

 

[Whizbang Dustyboots]

Yeah, the swag sector seems drastically underutilized.

The D&D t-shirt of the month club suggests they're going to try getting money from a lot of different avenues.

 

[darjr]

One interesting thing is that a large purportion of ddb players play using their phone.

 

[Umbran]

The D&D t-shirt of the month club suggests they're going to try getting money from a lot of different avenues.

Here's hoping the do well at it. The real questionable bit, to be honest, is going to be quality. I am well beyond cheap plastic swag.

 

[Alzrius]

"Under-monitized" can mean anything from "we're going to charge you micro-transactions" to "we're not selling enough swag." Given how much swag they're pushing regarding the movie (my Amazon wishlist is full of it, hint hint, holiday shoppers), I think it's too soon to assume the worst.

I disagree, I think this is exactly the right time to start assuming the worst.

Quite frankly, this news is disconcerting, but not at all surprising. I recall being at a seminar at Gen Con a year or two before the pandemic hit where James Lowder explained that WotC's take on D&D 5E was (to paraphrase his words) all about the branding, because the big money was in licensing. That's essentially what we're seeing here, along with the push towards D&D Beyond as a virtual marketplace where transactions and micro-transactions can be pushed to the forefront of the play experience.

They note, in this chat, that DMs are the smaller segment of D&D's customer base, but buy the most. That's called the Pareto principle, and it's nothing new where sales figures are concerned. What I think we're hearing here is that Hasbro wants to break this down so that they can have the rest of the group kicking in greater sums of money as well. Micro-transactions for the D&D Beyond platform align very well with this.

That's in addition to other likely contractions of the play experience, as noted in this excellent video from several weeks ago:

 

[DarkCrisis]

The D&D t-shirt of the month club suggests they're going to try getting money from a lot of different avenues.

Wood Burning Kits are back!

 

[bedir than]

The D&D t-shirt of the month club suggests they're going to try getting money from a lot of different avenues.

It's over a year old, so probably not the new model.

 

[darjr]

OK the four quadrants are for D&D.

1. Blockbuster entertainment
2. Tripple A gaming. (part of the digital push)
3. Amazing set of products. (hobby stores and books and accessories and DnDBeyond).
4. Casual things like toys and games for casual fans.

@Morrus

 

[darjr]

I disagree, I think this is exactly the right time to start assuming the worst.

Quite frankly, this news is disconcerting, but not at all surprising. I recall being at a seminar at Gen Con a year or two before the pandemic hit where James Lowder explained that WotC's take on D&D 5E was (to paraphrase his words) all about the branding, because the big money was in licensing. That's essentially what we're seeing here, along with the push towards D&D Beyond as a virtual marketplace where transactions and micro-transactions can be pushed to the forefront of the play experience.

They note, in this chat, that DMs are the smaller segment of D&D's customer base, but buy the most. That's called the Pareto principle, and it's nothing new where sales figures are concerned. What I think we're hearing here is that Hasbro wants to break this down so that they can have the rest of the group kicking in greater sums of money as well. Micro-transactions for the D&D Beyond platform align very well with this.

That's in addition to other likely contractions of the play experience, as noted in this excellent video from several weeks ago:

Wow you blow your argument by posting that persons click bait video. I don't take him seriously at all.

 

[overgeeked]

Brand under-monetized

Uh oh. Here we go.

Start future monetization starting with D&D Beyond

Micro-transations are already a thing on D&D Beyond.

DMs are 20% of the audience but lions share of purchases

Wow. 20%? So for every 1 DM there's 5 players, not 10. That does not track. Maybe they're basing this off something they have, like D&D Beyond data that doesn't actually include the whole fan base.

Digital game recurrent spending for post sale revenue.

Anyone translate that to English?