D&D, Magic: The Gathering Face a $60m Revenue Drop in Q3
Hasbro’s third quarter finances are in; both D&D and Magic: the Gathering face sizable dowturn in Q3 2022. But even so, Hasbro is hopeful.
Earlier this week, Hasbro released its third-quarter financial results, showing losses across the board. Including sizable losses for Wizards of the Coast and Digital Gaming, with a 16 and 35% (respectively) drop in net revenue compared to Q3 2021. But even in the face of a $60 million drop in revenue, Hasbro remains hopeful.
Citing what they expect to be a boom for Magic: the Gathering in the coming months, Hasbro released their report.
Hasbro Reports D&D and Magic: the Gathering Down Q3 2022
Though Wizards of the Coast, in comparison are performing much lower than expected, Hasbro president Chris Cocks was careful to couch that they had been expecting to see figures like this.
Hasbro cites that much of the drop is due to sizable delays to their Magic: the Gathering releases. Delays and other “supply chain challenges” hit pretty hard. And alongside that, bigger releases “and entertainment content” are scheduled for the fourth quarter as opposed to the third quarter.
Cocks went on to explain:
“As expected, the third quarter is our most difficult comparison and was further impacted by increasing price sensitivity for the average consumer.
To achieve our full-year outlook, we are projecting Hasbro’s fourth-quarter revenue to be approximately flat versus last year on a constant currency basis with particular strength from our Wizards and Digital Gaming segment. Growth will be driven by what we expect to be one of the biggest fourth quarters for MAGIC: THE GATHERING as we kick off the brand’s 30th anniversary and celebrate Hasbro’s first ever $1 billion brand.”
You know it’s bad when even the president of Hasbro acknowledges that players aren’t into the recent price hikes. Take a look at the 30th-anniversary set’s price tag, for instance. It’s an ongoing community “pain point.”
But, as Cocks points out, the biggest sets are on the way. And on the D&D side of things, this was also the same year WotC invested heavily in development. Just this month they announced the launching of a new major video game studio. As well as acquiring D&D Beyond.
Whatever the case, WotC continues to be the shining star in Hasbro’s portfolio. Hasbro saw an overall decline of 47% (or an adjusted 31%) to their operating profit compared with Q3 2021, despite only a 15% change in revenue.
If the 4th Quarter ends up being good to WotC, then that may all turn around.
