I went to my first Gen Con in 2014, and it was an amazing and lucky experience.
Gen Con, the biggest and most enduring tabletop gaming convention in North America, has been taking place in Indianapolis since 2003. Prior to relocating, Gen Con was closely linked to the well-known role-playing game due to its origins in Lake Geneva, Wisconsin, the birthplace of Dungeons & Dragons (D&D) creator Gary Gygax. Hasbro ( HAS 0.39% ) The fifth edition of the game was launched with extensive advertising at Gen Con, featuring a D&D-themed castle built in one of the largest ballrooms at the Indianapolis Convention Center.
Last week, after a decade, Hasbro made a comeback at Gen Con to mark the 50th anniversary of D&D, introduce the latest version of the game, and kick off a campaign to promote new rulebooks to its 54 million Dungeons & Dragons enthusiasts.
The latest version of the 5e Player’s Handbook has been updated and enhanced for the year 2024. Image credit: Hasbro.
A preview of Dungeons & Dragons in 2024
The new version of D&D rulebooks will not be available for regular retail purchase until September 17, 2024. However, there is already excitement surrounding the release. company that provides amusement or enjoyment is now allowing customers to place pre-orders for the product. Handbook for Players (2024) , the initial core rulebook out of the three intended for the latest edition of the game.
During the previous week, the company released 3,000 limited editions of the rulebook for purchase at Gen Con. As expected, the books were quickly sold out. This means that Wall Street analysts can now include an additional $149,970 in third-quarter revenue for Hasbro.
Investors are eager to know if the current strong sales trend will persist and have a significant impact on Hasbro’s profits. The key question is how significant the new Dungeons & Dragons edition will be for Hasbro’s stock performance. Manual for Players but also a new Guide for Dungeon Masters in the year 2024 and Monster Manual (2024) Can the sales of these newly updated rulebooks make a significant impact on a stock that has experienced declining revenues for three consecutive years and reported a massive loss of $1.5 billion in the previous year?
The importance of Dungeons & Dragons for Hasbro and its shareholders
This is not just a random thought. Hasbro has been gradually getting smaller over the years. products that are intended for use by consumers The division now is 26% less in size compared to its size five years ago. However, Wizards of the Coast, the Hasbro division that encompasses both Dungeons & Dragons and Magic: The Gathering, continues to expand.
Indeed, S&P Global Market Intelligence is the name of a company. Statistics show that Wizards of the Coast experienced a significant growth in sales over the past five years, with their revenue doubling. The D&D division contributed almost one-third of Hasbro’s total earnings, amounting to $1.6 billion in annual revenue last year.
Describing the importance of Dungeons & Dragons for Hasbro, it can be said that it has become a significant driver of growth for the company. The success of this business will play a crucial role in Hasbro meeting the expectations of analysts for the company to become profitable again this year. increasing its profits twofold by 2028 .
The issue is…I doubt it will occur. Or at least, I believe the launch of Dungeons & Dragons (2024) alone will not have a significant impact on Hasbro.
Certainly! There is no absolute requirement to purchase the new rulebooks in order to keep playing D&D. While Hasbro highlighted the new books as offering additional player choices, improved structure, and exciting updates to the fifth edition rules, my general view is that the books serve to enhance and streamline the current rules of D&D, rather than completely overhauling the existing D&D framework.
However, even if they did, think about the outcome in 2014 when Hasbro launched its product. last significant Dungeons & Dragons 5th edition updateEdition.
In the past, Hasbro did not separate the revenues from Dungeons & Dragons (or even from Wizards of the Coast) as standalone figures. Instead, they included these results within the broader category of the “games” division. Annual reports submitted to the Securities and Exchange Commission (SEC) The total revenue from games experienced a 4% decline in 2014 compared to 2013, despite not including any earnings from the new D&D launch. In 2015, despite the increasing popularity of the fifth edition among players, Hasbro’s overall games revenue only increased by 1%. It wasn’t until 2016, which was two years after the new edition was released, that the games revenue began to show significant growth. Even then, Hasbro credited the growth more to Magic: The Gathering rather than to D&D.
Undoubtedly, the Dungeons & Dragons franchise has significantly grown in size and popularity over the past decade. The game now boasts a larger fan following and a wider audience to attract potential purchasers for their latest rulebooks. could Hasbro will experience a greater increase this time compared to the previous occasion.
I wouldn’t place my bets on that.
