Hasbro's Chief Executive Officer stated, "We are fully committing to transforming into a digital play company"
Hasbro's CEO, Chris Cocks, outlined the company's plans to emphasize "digital play" during the Q2 financial results announcement. They have earmarked $125 million for video game development, with plans to release one to two new titles annually starting in late 2025 or early 2026.
In a discussion during Hasbro's earnings call, as documented by Seeking Alpha, Cocks highlighted the recent addition of John Hight as president of Wizards of the Coast and Digital Gaming. This move, along with the inclusion of more executives with video game backgrounds, aligns with their strategy to advance their "mid-core and hard-core brands" into the digital space.
Cocks stated that Hasbro's annual capital allocation is about $250 million, with half of it devoted to digital games. He aims for the company to produce one or two new games each year starting as early as late 2025 or early 2026.
He revealed that Hasbro currently has 150 ongoing or completed licensed projects. The company is enhancing its digital capabilities by involving industry talents like Ames Kirshen, known for the Batman Arkham series at Warner Bros, and James Ohlen, known for his work on Baldur's Gate and Mass Effect at BioWare.
Hasbro's Q2 results showed a significant increase in revenue for the Wizards of the Coast & Digital Gaming segment, which rose by 20% year-on-year. In contrast, other sectors such as Consumer Products and Entertainment saw declines of 20% and 90%, respectively, with the company having sold its eOne film and TV division to Lionsgate.
Revenue for Wizards of the Coast & Digital Gaming also grew by 20% in the first half of 2024. Much of this success was credited to Scopely's Monopoly Go, which has exceeded $3 billion in revenue, establishing Hasbro as the leading video game licensor over the past year, according to Aldora. The ongoing success of Baldur's Gate 3 also contributed positively.
Cocks emphasized the lasting impact of digital technologies in the toy and game sector, noting that Hasbro's significant investment in its own studio capacities and partnerships places them well ahead of competitors. "Games like Baldur's Gate 3 show us what the future looks like," he remarked.
In December 2023, Hasbro announced plans to cut 1,100 jobs, following an earlier reduction of 800 positions. Additionally, in April, Hasbro's head of digital product development, Dan Ayoub, discussed their $1 billion commitment to internal game development.
