Revenue for Hasbro’s Wizards of the Coast and Digital Gaming segment was up by a massive 40% in Q3 2023. The company’s quarterly financial results, published October 26, show this section earned $120 million more in Q3 2023 than it did for the same period of 2022. Meanwhile, Hasbro as a whole continues to see decline, with total revenue down 10% for the third quarter.
It’s worth looking more closely at why Wizards of the Coast has seen so much growth, as much of the change comes from digital gaming instead of Wizards’ key brands Dungeons and Dragons and Magic: The Gathering. These areas did see success, with tabletop gaming as a whole growing 18%, and Magic: The Gathering reporting a 20% increase in revenue for the quarter, up $48m. Hasbro’s report attributes the growth to MTG Wilds of Eldraine and MTG Commander Masters releases, along with continued high sales of MTG Lord of the Rings.
However, digital gaming was the real bees knees, as this segment saw its revenue more than double, rising from $57m to $133m. The two big money makers were Baldur’s Gate 3, Larian’s RPG which launched in August, and “to a lesser extent”, the report says, Monopoly Go, which came out in April and is currently one of the best-performing mobile games.
On its release month, Hasbro CEO Chris Cocks said he expected Baldur’s Gate 3 to be the equivalent of a major blockbuster release, and earn more for the company than all its film licensing in the last 5-10 years. It’s certainly done well for the business, going by these numbers.
Taking the financial results report as a whole, it appears that every section of Hasbro, from entertainment to consumer products, is in decline except for Wizards of the Coast and digital gaming. We’re put in mind of rogue investor Alta Fox’s assertion, in 2022, that Hasbro is a Wizards of the Coast business that also happens to make toys.
In the Q3 2023 report, Cocks says “We believe in the long-term growth potential of toys and are leaning in.” He adds that Hasbro is “building new growth for the Company across games, direct to consumer and licensing” and that selling entertainment company eOne will refocus the business “on what has traditionally made us great, the business of play”.