Hasbro strongly refutes claims it is ‘destroying’ Magic: The Gathering

In November, analysts at Bank of America issued a rare double downgrade of Hasbro stock, claiming that the gaming giant was “destroying the long-term value” of its Magic: The Gathering Overprinting cards can help you brand. These claims were rebuffed by Cynthia W. Williams, Wizards of the Coast’s president and CEO Chris Cocks. The executives spent nearly 45 minutes during a “fireside chat” publicly defending their strategy, while at the same time revealing important details about the future of the collectible card game — and its sibling, the iconic role-playing game Dungeons & Dragons.

Archived online, the presentation opened with an overview of the MagicPlayer base. Then, around 25 minutes in, host Arpiné Kocharyan, an analyst from UBS, got to the point.

“There’s been this claim that you’re printing too many cards,” Kocharyan asked. “What is your one-sentence answer to that?” Williams began by explaining that major releases are not produced on a limited basis. Instead, the company uses a “print-to-demand” model, whereby Hasbro pushes more cards into the sales channel following its initial release when retailers demand more. Williams went on:

The average number of tentpoles and premiere sets sold in post-launch in 2022 was the same as 2021. Overall, evidence does not support the claim that there was any increase in tentpole sales. Magic is overprinted, and the sentiment of “Magic needs to cut print runs to support prices” — that’s a misunderstanding of our business and our customers. If our prices for a potential product rise significantly soon after our launch, that simply means that we’re not adequately meeting customer demand and we are making millions of players unhappy at their lack of ability to acquire the card they want to play.

Williams later resisted another claim. This one was made most recently by vocal members of The Magic community online — namely, that falling prices on the secondary market are evidence that Hasbro is releasing too many sets of cards each year. Williams’ response:

While we understand the importance of the product’s collectible aspects, some players may be more interested in the trading aspect. We are delighted to see our players continue enjoying our products years later. But we don’t participate in secondary market activity for MagicWe do not sell products and we don’t make any money from selling or trading. We do however hear some feedback from our customers. [Wizard’s Play Network-affiliated local game] stores that trade and sell cards after an initial sale, is that like any market for any other collectible products, some products and individual cards do become more collectible than others, and values can change over time due to a multitude of external factors — many entirely unrelated to the number of cards printed. There is no evidence that this will happen. [have]a significant decrease in interest after purchase or trading. Magic products.

Williams and Cocks also spoke plainly about fans’ response to the recently-released Magic: The Gathering 30th anniversary edition. Long-time players felt upset when the box contained four booster packs of 15 cards worth nearly $1,000. The pack included reprints and rare cards like the Black Lotus. Williams claimed that Hasbro heard the players’ feedback, and that they responded by making fewer sets available on the market. Meanwhile, Magic’s Warhammer 40,000 set of cards — part of its burgeoning Universes Beyond initiative — is now in its third printing, and Hasbro is making as many of those cards as possible to meet consumer demand.

“Magic will be our first billion-dollar brand this year,” Williams said. “We’re growing that brand ahead of the industry, and pushing the boundaries of where we can take the product. That is what we do more than anything. […] and sometimes we step back and listen to customer feedback.”

Williams said that in 2023 there will be six big tentpoles, similar to 2022. These releases will however be distributed more evenly over the course of the year.

“In the second half of 2022 we had a really compressed release schedule that was partially driven by supply chain issues,” Williams said. “But in 2023, we will return to our preferred release cadence of approximately two months between our tentpole sets, with individual micro-sets sprinkled in between.”

Fans who are die-hard MagicExpect more crossovers with non-English speakers.MagicIntellectual properties such as Doctor Who and The Lord of the Rings are among them. According to the executives, this type of collaboration will continue to be the best way of onboard new players.

So what does this all have to do with D&D? Williams stated that many growth factors have contributed to the success and longevity of D&D. Magic will also be applied to D&D — especially when it comes to digital content. Magic’s biggest area for growth, the executives said, is in the digital space. So-called “hybrid players” — that is, players who play MagicBoth online and physical cards The Gathering Arena – Magic — spend 40% more than other Magic players. Therefore, the goal is to open up similar opportunities for players to spend money through the newly acquired digital toolset D&D Beyond.

“Dungeon Masters […]Although they make up less than 20% of the total audience, they account for the majority of our players who pay. [today],” said Williams, who previously worked at Microsoft as general manager and vice president of its Gaming Ecosystem Commercial Team. “For the rest of the players at the table, we believe digital will allow us to offer a lot more options to create a rewarding experience.”

You don’t have to work too hard to read between the lines on this one. Hasbro is already getting customers used to downloading digital content through D&D Beyond with free material right now — like this holiday season’s digital advent calendar. Players should expect more micro-transactions on D&D Beyond throughout 2023.