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WotC Hasbro's CEO Reports OGL-Related D&D Beyond Cancellations Had Minimal Impact

Hasbro held a quarterly earnings call recently in which CEO Chris Cocks (who formerly ran WotC before being promoted) indicated that the OGL controversy had a "comparatively minor" impact on D&D's revenue due to D&D Beyond subscription cancellations. He also noted that D&D grew by 20% in 2022 (Magic: the Gathering revenues grew by an astonishing 40% in Quarter 4!) WotC as a whole was up 22%...

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Hasbro held a quarterly earnings call recently in which CEO Chris Cocks (who formerly ran WotC before being promoted) indicated that the OGL controversy had a "comparatively minor" impact on D&D's revenue due to D&D Beyond subscription cancellations. He also noted that D&D grew by 20% in 2022 (Magic: the Gathering revenues grew by an astonishing 40% in Quarter 4!)

WotC as a whole was up 22% in Q4 2022.

Lastly, on D&D, we misfired on updating our Open Gaming License, a key vehicle for creators to share or commercialize their D&D inspired content. Our best practice is to work collaboratively with our community, gather feedback, and build experiences that inspire players and creators alike - it's how we make our games among the best in the industry. We have since course corrected and are delivering a strong outcome for the community and game.
 

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Parmandur

Book-Friend
I guess to be more precise, the former owner of Patagonia, Yvonne Chouinard, did an incredibly altruistic thing. I haven't followed what the trust he set up has done with the company since then so you may be right.

Chuck Feeney's story is another example of what is possible when a company is privately held. (I worked for him indirectly and shook his hand exactly once. I have nothing but respect for him.)

EDIT: But I bet, with enough information, one could find an example, and maybe even lots of examples, of things that happened under Chuck's leadership that some would consider evil. Canceling a contract after a vendor has invested in supplying that contract, laying off employees in order to outsource, racial/gender bias in promotions, etc. I don't know what they would be, but I'm sure they're there. I guess it depends on how perfectly, across all dimensions, you expect an organization to behave in order to count as non-evil.
Yeah, I'm not saying they are evil or anything, but the "altruism" involved is a little bit of PR stunt. There is plenty out there about how the move actually increases the wealth of his heirs...not that there is anything inherently wrong with that.
 

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They wanted to make money, but they chose the wrong path. Even if it was legal, allowed by the law, it wouldn't be ethical in the eyes of the consumers.

It is not resement, but a lot of effort will be necessary to recover the lost trust. I felt offended because it was as if they imagined me like a compulsive-buyer zombie. We need Hasbro because this has got the means to promote the hobby, but this should remember the new players soon discover they are other options, and they shouldn't test our patience and pocket.

And I am not happy because the books aren't not only more expensive than in previous years, but also more than other books by other publishers..... and I had to await years for the translated version.

I bought a lot of books for the 3.5 age, and now the part of "crunch" is not so interesting for me. I want to buy books about new monsters, PC species and classes. There is no new class after the artificer, and I doubt to buy a sourcebook with new PC species if later these will be published again in a book like Moderkainen monsters of the multiverse.

Please! Even this trouble appeared published in no-geek press.

Maybe they learnt the lesson, because the chastisement was very painful for a company. The CEOs should think twice before a new action like this.
 


Mirtek

Hero
If you add license fees for D&D socks to the pile of revenue WotC makes, how would you treat a Star Wars IP? Let's say all the physical SW games, that's a LOT.
Wouldn't SW license fees go to Disney? Hasbro could only count their direct revenue minus the fees they have to pay Disney
 

Warpiglet-7

Cry havoc! And let slip the pigs of war!
But what did this business do, exactly? Flirt with revoking IP rights that they had previously shared, and then completely reverse themselves after they faced a backlash.

Okay. The former is standard corporate behaviour; the only thing that made it noteworthy is that they ever shared the IP rights to begin with. The latter is...exactly what we want corporations to do, isn't it? Back down from doing the bad thing and change their policy in accordance with our demands?

So I don't get the particular outrage now that they've backed down. They did what we wanted. If you are still upset with them you must be REALLY upset with just about every other corporation, because almost all of them do worse things and never back down.

What, exactly, is the incentive to compromise and give in if our response is to continue to vilify them? This just seems like outrage for the sake of outrage.
I think you got it right. I don’t begrudge them doing exactly what businesses do.

In this case I did not like it—-so was glad the consumers sent a message about our preferences.

I have a vested interest in there being variety and the non VTT 3D world being as unfettered as possible.

For me anyway, I did not just learn that my hero kicks puppies or anything. They do what they do and as far as I can tell stepped back when called out.
 

I think you got it right. I don’t begrudge them doing exactly what businesses do.

This I don't get. I can understand people saying what they did was fair (I don't think it was, I think it was a pretty unthinkable thing for an RPG company to do at the time, but I get the argument if you think OGL was bad for them, therefore they acted in their best interest). But just chalking up something the whole RPG community was up in arms about (I think justifiably because of what the OGL meant and the culture it created), to that's just what businesses do seems almost suicidal culturally. I rarely get outraged over these types of things. I am not one to buy a particular type of shampoo for example because of broader ethical concerns. But when companies do things like this, when they do things that impact people in a significant way (i.e. chemical spills in peoples' towns, jacking up the price of cheap but life saving medicine like epipens or inhalers, etc).....I think it is not only fair but important for people to react in a strong way so companies aren't allowed to use their power to hurt the public or hurt the 'market' they are serving.
 

mamba

Legend
Yes, we know that. I think Kyle Brink also knows that. I think that other people in the room don't like other people being able to play in their playground and don't have high-falutin' ideas about D&D as a community. Instead, they see it as a detriment and impediment from them completely controlling their space.
as I said, I think they expected a better response and not that no 3pps would sign on.

Kyle clearly was dismissed when the decision was made, but I still do not think this was about wiping out 3pps, that was just an unintended side effect.

If it were the intent, they imo would have stayed the course.

They had been thinking about this for a while (Again, thank you Kyle Brink!) and the timing would indicate that they were trying to put enough of a gap between 1D&D and this that outrage would have died out and memories would have faded. to me, I think
I agree, I guess there is never a good point for announcing this, but as far away from your next important product as possible sounds like the best way to go, so the outrage can die down

I have no idea why it took them two years to discuss this though. Given how completely unreasonable that version was, I have no idea what they did for two years. You can create something this bad over a week and then throw it to the community for discussion and it could not have been worse.
I have no good explanation for that, delusion and paranoia are the closest I get.

I definitely think that 1.2 was more subtle in how Wizards could exert control, but they still had that control. They were very firm on that being in there, and I remember many of us saw that as them showing where they were going to try and hold their line.
that is more or less what I meant. Had they opened with 1.2 as a starting point for an open discussion, I think many people would have been ok with it. While there are some things they could exploit, you would not have expected them to do so.
After 1.1 there was no way you weren’t counting on them to do just that, even if the clause is pretty standard legalese language.

I don't think so.

I mean, okay, yeah they could, but I think they wisely saw it as being way more detrimental to a lot of big things for them coming up: they had a movie releasing in roughly 2 months and this story would absolutely get more and more play because that's exactly the sort of juicy narrative the news would want to hit. Plus I think doing this in the middle of the playtest threatened to taint 1D&D going forwards because it would just become inextricably linked to it.
all true, it would have a negative impact on this, I just think it would have been small enough for them to just ignore it if 1.1 were that important to them.

Most of the player base does not care, which also means WotC can afford not to. We had people in this forum being ok with it, and if this is true here, most players certainly would be too.

Also, Kyle says they were working on 1.2 when 1.1 leaked, in which case they were much more open to changes than just giving in to community pressure. So do you think he lies there or how do you explain that?

For me it is rather simple, they were surprised by the reaction (and as I said before, I do not understand why they thought the 1.1 terms and revoking 1.0a would go over any better than it did), but were open for discussion.
Changing the terms from 1.1 to 1.2 based on 3pp feedback was already happening, then either leaving 1.0a in place or going to CC because you do recognize you lost trust was a smaller step than going from 1.1 to 1.2 was.

Would this have happened without pushback? No, but it did not take all that much either, so they were not that set on the 1.1 terms which to me means they were open for discussion, they just went about it in a way that did not help them (but one that is understandable, ie iron it out with the big 3pps first, and then open it for wider discussion)

And I think that's part of what the design team told them: that they were basically poisoning their newest product before it was released, and that the sooner they moved on from this, the better chance they had of eventually healing the rift and forgetting about it.
No doubt, it sounds like they said so all along but were ignored. After the leak and survey, they had the data to back it up.

We just disagree on intent (killing / dominating 3pps vs defense against imagined threats), the extent of the damage to D&D this would have done and by extension how open to changing the terms they were to begin with (with the intent also factoring into this).
 
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Warpiglet-7

Cry havoc! And let slip the pigs of war!
This I don't get. I can understand people saying what they did was fair (I don't think it was, I think it was a pretty unthinkable thing for an RPG company to do at the time, but I get the argument if you think OGL was bad for them, therefore they acted in their best interest). But just chalking up something the whole RPG community was up in arms about (I think justifiably because of what the OGL meant and the culture it created), to that's just what businesses do seems almost suicidal culturally. I rarely get outraged over these types of things. I am not one to buy a particular type of shampoo for example because of broader ethical concerns. But when companies do things like this, when they do things that impact people in a significant way (i.e. chemical spills in peoples' towns, jacking up the price of cheap but life saving medicine like epipens or inhalers, etc).....I think it is not only fair but important for people to react in a strong way so companies aren't allowed to use their power to hurt the public or hurt the 'market' they are serving.
Let me clarify: I was not surprised.

I stated I was joining others to apply pressure. So in that sense I did begrudge them.

I don’t feel mortally wounded nor surprised that they make business decisions.

That said I am happy to smack them on the hand when they do things like this that are not in my best interest.

I am also happy to point out when they “message” benevolence and “for the community” when it’s for the bottom line.
 

I was watching youtube, and there was a video where one explained his opinion about Hasbro. Sorry, it was in Spanish languange. Then here the interesting part is in the comments, where collectors told there were (in the toy shops) too many figures from Marvel movies weren't sold well, and the figures were more expensive but with worse quality. Let's remember the popularity of Star Wars and the "new" marvel superheroes from the last movies and teleseries isn't too high.

This trouble is one other nail in the coffin, and I am afair it will be not the last. Even if Hasbro survives the recession after the epidemic may there are changes in the chairs of the CEOs.

Other point is some 3PP could be a future acquisition, and if this had got enough experience working with some special game mechanic (for example summonable monster allies), this would be time and money saved by Hasbro. Hasbro needs to recover that lost prestige if they want some 3PP would rather to be acquired by them and not by other, for example Disney with the licence of "Realm of Pugmire" for an animated movie, and World of Darkness in Disney+.
 

Parmandur

Book-Friend
Let me clarify: I was not surprised.

I stated I was joining others to apply pressure. So in that sense I did begrudge them.

I don’t feel mortally wounded nor surprised that they make business decisions.

That said I am happy to smack them on the hand when they do things like this that are not in my best interest.

I am also happy to point out when they “message” benevolence and “for the community” when it’s for the bottom line.
Same here, signed the petitions and all: I'm actually way more surprised that anyone ever trusted them, than I am thst they tried shenanigans. It's in the nature of the corporation.
 

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