WOTC and Magic Sales Dip in Q4 and 2024, Hasbro Has Hopes For 2025

Hasbro’s latest earnings report and conference call revealed a downturn in tabletop game sales for its Wizards of the Coast and Digital Gaming segment in both the fourth quarter and the full year 2024. However, the company anticipates a return to growth in 2025.

The Numbers:

Full Year 2024: Tabletop gaming sales within WOTC were down 3%, falling from $1,072.5 million in 2023 to $1,039.6 million. Magic: The Gathering experienced a 1% decline, primarily due to the absence of a comparable Q4 holiday set like 2023’s Lord of the Rings.
Q4 2024: The impact of the Lord of the Rings comparison is even more pronounced in the quarterly results. WOTC and Digital Gaming segment sales dropped 7% to $339.0 million, compared to $363.2 million in Q4 2023. Magic: The Gathering sales (including digital revenue) were down 19% to $208.4 million from $258.3 million in the same period last year. WOTC tabletop revenues specifically (including Dungeons & Dragons) saw a significant 22% decrease, falling to $207.0 million from $265.6 million. Operating profits in the segment also decreased, from $103.2 million in Q4 2023 to $80.9 million in Q4 2024.

Reasons for the Dip:

The primary driver for these declines is the challenging comparison against the highly successful Lord of the Rings holiday set from 2023. Without a comparable blockbuster release in Q4 2024, sales naturally decreased. Despite this, Hasbro CEO Chris Cocks highlighted positive indicators for Magic: The Gathering, including growth in active players, increased MagicCon attendance, and strong performance from sets like Foundations.

Company-Wide Performance:

While WOTC experienced declines in tabletop, Hasbro’s overall gaming sales (including its own game portfolio) were down 5% in Q4. Company-wide sales also decreased, though profitability saw a significant improvement thanks in part to cost-cutting measures.

Looking Ahead to 2025: A Return to Growth

Hasbro is projecting a return to sales growth in 2025, with a 5-7% increase expected for the WOTC and Digital Gaming segment. This growth is anticipated to be fueled by three Universes Beyond Magic: The Gathering sets: Final Fantasy, Spider-Man, and a yet-to-be-announced third set. Cocks expressed confidence that the Final Fantasy set could become the best-selling Magic set ever. He also noted that the Spider-Man set will be standard-only, which may limit its sales potential.

Hasbro’s “Playing to Win” Strategy:

Hasbro outlined its new “Playing to Win” strategy, focusing on:

Profitable franchises with play-focused brands
Appealing to older fans
Expanding sales to girls and emerging markets
Focusing on digital and direct-to-consumer sales
Scaling through retail and licensing partnerships
Cost Savings and Future Outlook:

Hasbro is increasing its cost savings target, aiming for $1 billion by the end of 2027. With the strong lineup of Magic: The Gathering sets planned for 2025 and the company’s strategic initiatives, Hasbro anticipates a brighter future for its tabletop gaming division.