Hasbro lost a staggering $1 billion (yes, billion) in revenue last year, and it looks like Magic and D&D are going to be hit by the slump.
Hasbro’s recent financial report showed a significant decline in revenue, with only their gaming arm, Wizards of the Coast, performing well. However, even within WotC, there are concerns about the declining sales of Dungeons & Dragons. The company also recently laid off over 1,000 employees as a cost-cutting measure.
Magic & DnD Revenue Drop Incoming From Hasbro Slump
Here is the latest on Habro’s earnings, their project Magic and DnD revenue drop, and 2023 loses.
Let’s look at some of the numbers. Hasbro’s sales have experienced a 23% decrease to $1.29 billion from $1.68 billion in Q4 2022. While the Entertainment segment had a 49% decline (including a loss in the sale above), the Consumer Products segment experienced a 25% drop. In contrast, Wizards of the Coast and Digital Gaming sales rose 7%, driven by digital games such as Baldur’s Gate III and Monopoly Go!
The tabletop gaming sales in this segment were nearly the same as last year, with a slight decrease of approximately $1 million to $266 million.
Magic only saw a 2% decrease from the previous year, which isn’t anything too wild but is not trending in the right direction. However, 2024 numbers aren’t expected to be better for the digital side or WotC; they are expected to decline by 3-5%, mainly due to tough competition out right now.
For 2023, Hasbro incurred a loss of $1.49 billion compared to a profit of $204 million in 2022. This was due to a 15% decline in sales, which amounted to $5 billion. Along with the entertainment write-offs, Hasbro also had to write down $130 million in inventory, as it reduced its inventory by over 50% from the previous year’s end. While Magic has been doing decent, it looks like D&D isn’t doing so well.
Dungeons & Dragons Slumping
WotC’s overall growth rate for tabletop games was only 1%, while the growth rate for Magic: The Gathering sales was 3-5%. These figures indicate a considerable decline in Dungeons & Dragons in 2023. As Magic sales are much higher, DnD dragged the overall percentage down by 2-4%.
The decline could be attributed to various factors, such as the controversies surrounding the OGL at the beginning of 2023, the underwhelming performance of the Dungeons & Dragons movie, and the announcement of upcoming updates to the core books. Either way, this hurt the WotC side of things and turned a decent increase into a very small one. However, D&D sales are expected to trend up somewhat, with many big releases on the way in 2024.
It remains to be seen how Hasbro will recover from these losses and what impact it will have on the hobby space.
What do you think about Hasbro reporting such giant losses?
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About the Author: Travis Pasch
