PAWTUCKET, R.I. – Hasbro, the American toy and game company, announced during an investor’s call that Baldur’s Gate 3 has brought in $90 million since its official release last year, thanks to a licensing deal. The popular RPG was released for PC in August 2023, followed by PS5 in September and Xbox in December.
During Hasbro’s Q4 2023 earnings call, it was revealed that Dungeons & Dragons publisher Wizards of the Coast’s revenue increased by 7% following the release of Larian Studios’ award-winning D&D role-playing game alongside Monopoly Go! This success led to a 3%-5% expected revenue taper down in 2024, resulting from the “strong growth” attributed to the release of Baldur’s Gate 3 and MAGIC: The Gathering’s Lord of the Rings set.
Hasbro’s CEO, Chris Cocks, expressed optimism about the company’s future, stating that the leadership team is bringing innovative new products to fans and they are taking the necessary actions to transform Hasbro for long-term profitable growth. Despite this positive outlook, Hasbro experienced a revenue decline of 15% and operated at a loss of $1.5 billion in 2023. The company also laid off around 6,500 workers last year as part of a cost-saving plan to save up to $300 million annually by 2025.
Cocks acknowledged that the company is likely to face some near-term industry headwinds in 2024, but remains confident in their strategy of “Fewer, Bigger, Better.” He emphasized that the groundwork laid in strengthening the balance sheet, upgrading planning, and right-sizing inventory will provide a strong foundation for the future. Despite the challenges, Cocks believes the company’s momentum from 2023 will continue into 2024.
In conclusion, Hasbro’s recent success with Baldur’s Gate 3 and other products is a bright spot amidst the company’s overall financial struggles. The company remains hopeful for the future, but the road to recovery will take time and strategic planning.