D&D General Official D&D In Decline. Source Hasbro.

[Sorcerers Apprentice]

it was real money when they bought it… which they did not get back when selling it, hence a writeoff

It's a bit more complicated than that. Hasbro transferred the most valuable assets owned by eOne to other business units before selling it, so they were never going to get the same amount back. Did Hasbro overvalue eOne before the sale? Absolutely, but that doesn't it was a bad deal overall.

 

[wicked cool]

I’d be really curious how much of this has to do with action figures and the move of younger kids going to video games nstead of board games

 

[payn]

Looks like I've already blocked whatever YouTube channel it was that created that embedded video. Let me guess: giant cartoony text with exclaimation points, a big red arrow, and an unrelated thumbnail image?

 

[mamba]

It's a bit more complicated than that. Hasbro transferred the most valuable assets owned by eOne to other business units before selling it, so they were never going to get the same amount back. Did Hasbro overvalue eOne before the sale? Absolutely, but that doesn't it was a bad deal overall.

I know I simplified it. The writeoff is for the difference of what you bought eOne for and the total of what you sold parts off for and the value you believe the remaining parts to have. I did not distinguish between those two parts, but it does not really change anything. The writeoff is money lost due to a bad investment, it is an actual loss, not just imaginary

 

[UngeheuerLich]

So that would mean...Hasbro is predicting strong D&D sales which are more than offset by even more dismal sales of M:tG and other WotC properties?

D&D 2024 is mostly Q4.
There are 3 Quarters before that.

Production cost of all the Books will have to be paid before release.

So you'd expect quite a bad year in 2024. 2025 is where all the effort put into the 2024 edition will pay off.

The minimal loss predicted in 2024 is not bad.

 

[mamba]

The minimal loss predicted in 2024 is not bad.

just to nitpick, they are not predicting a loss, they are predicting a decline in revenue

If BG3 fees were part of it, that alone could easily explain that

 

[UngeheuerLich]

just to nitpick, they are not predicting a loss, they are predicting a decline in revenue

That is even better. (I guess).

 

[mamba]

That is even better. (I guess).

it should be, they are also predicting an operating margin of 38-40%, so there should still be a decent profit left

 

[Sorcerers Apprentice]

I know I simplified it. The writeoff is for the difference of what you bought eOne for and the total of what you sold parts off for and the value you believe the remaining parts to have. I did not distinguish between those two parts, but it does not really change anything. The writeoff is money lost due to a bad investment, it is an actual loss, not just imaginary

The writeoff is the difference between the imagined money and the real money. That doesn't mean it was a bad investment. It could be bad, but it could also have been a good investment, just not quite as good as hoped.

 

[Xamnam]

It's honestly to the point where I see that youtube channel, and I assume the opposite of whatever the headline says is more likely to be true.