Hasbro toy maker Inc.
HAS 0.93%
is reorganizing itself to capitalize on a pandemic-fueled explosion in old school board games, creating a separate division around the publisher of Dungeons & Dragons and Magic: The Gathering.
Dungeons & Dragons, the fantasy RPG, and Magic, a collectible card game, were bright spots for the creator of the action figures Monopoly and Transformers. Its publisher, Wizards of the Coast LLC, recorded revenue of $ 816 million last year, up 24% from 2019, driven by what Hasbro says were record-breaking years for both brands.
Overall, Hasbro’s net revenue fell 8% last year to $ 5.47 billion, due in part to retail shutdowns related to Covid-19.
Retail in the Covid-19 era
Under the new structure, which the company plans to present at an event for investors on Thursday, Hasbro will be divided into three units. Consumer products will include toys like Transformers action figures and classic board games like Monopoly. The entertainment will be dedicated to the licensing, distribution and production of film and television content. Wizards & Digital will house 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 that the reorganization will allow it to replicate Wizards of the Coast’s success in digital games and licensing elsewhere in the company and boost other properties like GI Joe, Ouija and Transformers, according to a person familiar with the matter. According to Hasbro Chief Executive Brian Goldner, the Wizards unit is on track to double revenue from 2018 to 2023.
Hasbro acquired Wizards of the Coast, based in Renton, Washington, in 1999, in an all-share transaction valued at about $ 325 million. Its main games are designed to be played around a table and tend to reward real-world social interaction. Last year, when coronavirus blocks made face-to-face game nights impossible, fans turned to digital solutions like Zoom teleconferences for virtual meetings.
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“It’s the perfect time for RPG, people have more time available, and if you want to relax and see your friends, the best way is through virtual games,” said Satine Phoenix, former community manager at Wizards of the Coast, who now works as an author, D&D livestreamer and dungeon master trainer.
Wizards of the Coast says it has attracted new players by joining other fantasy and science fiction franchises. In 2020, the company published new Magic cards featuring characters from the AMC television show “The Walking Dead” and giant monsters, including Godzilla, from Japanese producer Toho Co.
Another limited set of letters featured paintings licensed by TV presenter Bob Ross.
Hasbro will announce new partnerships during Thursday’s event, including an agreement with the UK Games Workshop Group to bring its war game “Warhammer 40,000” to Magic, and an agreement with Middle Earth Enterprises for a “ The Lord of the Rings ”expansion. New video game projects include games developed by Bellevue, Hidden Path Entertainment, from Washington, and OtherSide Entertainment, from Boston.
Write to David M. Ewalt at [email protected]
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