PROVIDENCE – Wizards of the Coast, a division of Hasbro Inc. that makes trading card games and role-playing games including Magic: The Gathering and Dungeons & Dragons, has canceled at least five video game projects, Bloomberg News reported Wednesday.
A company spokesman told Bloomberg fewer than 15 people at Wizards of the Coast will lose their jobs due to the cancellations and will be given a chance to apply for new roles within the company.
Wizards of the Coast is still “committed to using digital games,” a spokesman said in a statement to Bloomberg, adding that the company has “made some changes to our long-term portfolio to focus on games which are strategically aligned with developing our existing brands and those which show promise in expanding or engaging our audience in new ways.”
In October, Hasbro reported a $129.2 million profit, or 93 cents per share, in the third quarter, down 49% from the same period last year. Stripping out one-time costs and amortization costs, earnings were $1.42 per share, well short of the $1.53 Wall Street had expected, according to a survey by Zacks Investment Research.
Revenue for the toymaker fell to $1.68 billion, down 15% from last year’s third quarter, and Hasbro said the strong dollar knocked 3% off of quarterly revenue, or almost $54 million. Its Wizards of the Coast unit saw revenues decline by 16%.
The company was also hit by a 26% decline in revenue from film and TV compared with the third quarter a year ago, which benefited from the streaming release of the films “Come from Away” and “Finch.”
Hasbro Inc. unveiled its corporate strategy Blueprint 2.0 on Oct. 4 when it cut its full-year revenue forecast. The initiative focuses investment on its most-valuable franchises across toys, games, entertainment and licensing. The toy company plans to significantly increase strategic investment in key brands, focusing on gaming, direct to consumer, franchise brands and licensing. Priority brands for merchandise investment include Peppa Pig, Transformers, Dungeons & Dragons, Magic: The Gathering and My Little Pony.
On Nov. 17, Hasbro announced it was selling part of its film and TV production and distribution unit, Entertainment One.
Hasbro bought Entertainment One for about $4 billion in 2019 to expand into the infant and preschool market by gaining access to popular TV shows such as “Peppa Pig” and “PJ Masks.”
On June 8, Hasbro shareholders reelected all of the company’s 13 directors to its board, rejecting a slate of three nominees from activist investor Alta Fox Capital Management, which had waged a contentious, monthslong proxy battle for more influence over the company.
