In 2022, Wizards of the Coast, the publisher of the Magic: The Gathering collectible card game, saw a 3% increase in revenue, reaching 1.33 billion dollars. On the other hand, Hasbro, Wizards parent company and the owner of popular brands such as Monopoly and Nerf, experienced a 9% drop in revenue. They announced they will be laying off 1000 workers, which is 15% of it’s workforce.
Wizards of the Coast’s Success in 2022
Wizards of the Coast’s success in 2022 can be attributed to several factors. Firstly, the growing popularity of Magic: The Gathering, which saw a surge in player numbers and a strong sales performance for its new sets and merchandise.
Secondly, the company’s investments in esports and digital initiatives, such as Magic: The Gathering Arena, helped drive growth in the online gaming space.
Hasbro’s Challenges in 2022
Hasbro’s challenges in 2022 were primarily due to the global economy. The company’s traditional brick-and-mortar retail channels were greatly impacted as consumers shifted their spending habits toward online purchases. In addition, Hasbro’s portfolio of games and toys saw a decline in demand, leading to lower sales and profits.
Hasbro didn’t release any details about what divisions would be impacted by the layoffs.
The Future of the Gaming Industry
Looking forward, the gaming industry is expected to continue its growth, with the rise of mobile gaming and the increasing popularity of esports driving demand. However, companies will need to adapt to the changing landscape, as consumers become more discerning and demand more engaging and innovative experiences.
We will likely learn more when Hasbro delivers its official Q4 and 2022 financial information on February 14, 2023.