Toy manufacturer Hasbro Inc.
A 0.68%
reorganizes to capitalize on a pandemic-fueled boom in old-school board games, creating a separate division around the publisher of Dungeons & Dragons and Magic: The Gathering.
Dungeons & Dragons, the fantasy role-playing game, and Magic, a collectible card game, were bright spots for the action figure maker Monopoly and Transformers. Their publisher, Wizards of the Coast LLC, had revenue of $ 816 million last year, up 24% from 2019, fueled by what Hasbro says were record years for the two brands.
Overall, Hasbro’s net revenue fell 8% last year to $ 5.47 billion due in part to Covid-19-related retail closures.
Retail trade in the time of Covid-19
Under the new structure, which the company plans to unveil at an investor event on Thursday, Hasbro will be split into three units. Consumer products will include toys such as Transformers action figures and classic board games such as Monopoly. The entertainment will be dedicated to the licensing, distribution and production of film and television content. Wizards & Digital will host the assets of Wizards of the Coast and will focus on expanding existing games, creating new ones and overseeing digital licensing for the entire business.
Hasbro hopes the reorganization will allow it to replicate the Wizards of the Coast’s success in digital gaming and licensing in other parts of the company and stimulate other properties such as GI Joe, Ouija and Transformers, according to someone familiar with the matter. According to Hasbro CEO Brian Goldner, the Wizards unit is about to double its revenue from 2018 to 2023.
Hasbro acquired Renton, Washington-based Wizards of the Coast in 1999 in a $ 325 million share transaction. Its iconic games have been designed to be played around a table and tend to reward real-world social interaction. Last year, when coronavirus blockage made in-person gaming nights impossible, fans turned to digital solutions such as Zoom teleconferences for virtual meetings.
SHARE YOUR THOUGHTS
Did you rediscover board games during the pandemic? If so, which one did you like the most? Join the conversation below.
“It’s the perfect time for role-playing games, people have more time on their hands, and if you want to relax and see your friends, the best way is through virtual games,” said Satine Phoenix, former community manager for Wizards. Coast, who now works as an author, D&D livestreamer and “master in prison” coach.
Wizards of the Coast says it has attracted new players by joining other fantasy and SF franchises. In 2020, the company released new Magic books that included characters from the AMC TV show “The Walking Dead” and giant monsters, including Godzilla from the Japanese film company Toho Co.
Another limited set of cards contained paintings licensed from the estate of TV host Bob Ross.
Hasbro will announce new partnerships at Thursday’s event, including an agreement with Games Workshop Group in the UK to bring its “Warhammer 40,000” war game to Magic and an agreement with Middle Earth Enterprises for a “Lord of the Rings” expansion . New video game projects include games developed by Bellevue, Hidden Path Entertainment and Boston’s OtherSide Entertainment.
Write to David M. Ewalt at [email protected]
Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8