Toy maker Hasbro Inc. is reorganizing to capitalize on a pandemic-fueled boom in old-school tabletop games, creating a separate division around the publisher of Dungeons & Dragons and Magic: The Gathering.
Dungeons & Dragons, the fantasy role-playing game, and Magic, a collectible card game, have been bright spots for the maker of Monopoly and Transformers action figures. Their publisher, Wizards of the Coast LLC, posted revenue of $816 million last year, up 24% from 2019, fueled by what Hasbro says were record years for the two brands.
Overall, Hasbro’s net revenue fell 8% last year to $5.47 billion, due in part to retail shutdowns related to Covid-19.
Under the new structure, which the company plans to unveil at an investor event on Thursday, Hasbro will be divided into three units. Consumer products will encompass toys like Transformers action figures and classic board games like Monopoly. Entertainment will be dedicated to licensing, distribution and production of film and television content. Wizards & Digital will house the assets of Wizards of the Coast and focus on expanding the existing games, creating new ones and overseeing digital licensing for the entire business.
Hasbro hopes the reorganization will allow it to replicate Wizards of the Coast’s success in digital games and licensing in other parts of the company and boost other properties like G.I. 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.
