After a year of huge financial success, Hasbro predicts Wizards of the Coast’s revenue will decline in 2024. The forecast comes from a quarterly financial report released by Wizards’ parent company on February 13, and Hasbro further echoed the idea in an investor call from the same day.
Wizards of the Coast and Digital Gaming (which covers gaming titles like Baldur’s Gate 3 and Monopoly Go!) actually saw a 10% year-on-year increase for Q4. Hasbro attributes this success to the two titles we just mentioned from digital gaming, as well as its landmark Lord of the Rings MTG set (though the same statement shows the third-party licensing is impacting operating profit).
Despite this, Hasbro’s overall revenue declined 23%, continuing a downward trend for the parent company that was seen for much of 2023. Wizards of the Coast may not be a loss-maker, but it was still affected by the Hasbro layoffs that capped off last year. And Hasbro sees a smidgen of trouble on the horizon, predicting that Wizards will see a revenue drop of three to five per cent.
“The decline is primarily a result of the strong growth delivered in 2023 by Baldur’s Gate 3 and the Magic Lord of the Rings set”, says Hasbro CFO Gina Goetter in Tuesday’s investor call. She apparently expects to see growth in the start of the year, “with the decline coming in the back half as we comp the huge launches”. Goetter also says Magic: The Gathering, which pulled in impressive profits in both 2022 and 2023, will see revenue “flat or down” in the coming year.
Despite this, Hasbro seems optimistic Wizards of the Coast will ride the storm. CEO Chris Cocks calls D&DBeyond “an excellent acquisition” and highlights the upcoming One DnD books as a major product launch. In the world of MTG, Goetter claims “Magic will be back to growth in 2025 as we expand our Universes Beyond lineup”.
For more information from the call, here’s a hint that D&D Beyond may see Universes Beyond style content. You can find the rest of the fiscal results in Hasbro’s financial report. And, for more on D&D and MTG, be sure to follow us on Google News.