By The release of Baldur’s Gate 3, the highly anticipated videogame version of Dungeons & Dragons, has caused a sensation in the gaming world and on social media. Developed by Larian Studios, this game holds great financial potential for Hasbro because its Wizards of the Coast division owns the tabletop version of D&D, which is immensely popular.
In the traditional version of Dungeons & Dragons, players gather around a table, assuming the roles of characters like wizards and fighters, embarking on adventures in a fictional world. Through dice rolls, they determine the outcomes of their actions, whether it’s casting powerful spells or engaging in epic battles with dragons.
With the release of Baldur’s Gate 3, players can now experience the excitement of D&D without the need for physical character sheets, maps, and figurines. Set in the captivating realm of the Forgotten Realms, players can immerse themselves in this imaginary world either alone or with a group of up to three others. Like the original game, they will encounter magical monsters, establish friendships with characters, unleash potent spells, and much more.
The game has gained significant attention within pop culture, as evidenced by the staggering 1.7 billion views amassed under the hashtag #baldursgate3 on TikTok. This newfound popularity is introducing a fresh audience to the world of D&D—a crucial development following the recent release of the D&D film. Moreover, as the company approaches the 50th anniversary milestone of this iconic role-playing game in 2024, James Zahn, editor in chief of The Toy Book, believes that this surge in interest will have a positive impact on both revenue and brand recognition.
Not only is Hasbro benefiting indirectly from the game’s success, but they are also reaping direct rewards. Larian Studios developed Baldur’s Gate under license from Hasbro’s Wizards of the Coast, which not only oversees D&D but also the immensely popular card game, Magic the Gathering.
With the ongoing popularity of Baldur’s Gate 3 and its introduction of new players to the D&D universe, Hasbro can expect increased revenue from the sale of tabletop games and branded merchandise. The success of this videogame serves as a testament to the enduring appeal and legacy of Dungeons & Dragons.
Baldur’s Gate 3: A Game-Changer for Hasbro
Wizards of the Coast, the company behind iconic tabletop games, is keeping tight-lipped about its licensing deal with Larian, leaving us in suspense about the specifics of this arrangement. Nevertheless, industry insiders have high hopes for the financial impact that Baldur’s Gate 3 will have on Hasbro.
Industry analysts surveyed by FactSet project that Wizards of the Coast’s revenue from digital gaming and its flagship property will reach $390 million for the third quarter, surpassing the previous year’s figure of $304 million. The quarter’s franchise brand sales are also expected to soar to $1.02 billion, up from $814 million in the same period last year.
During the Hasbro second-quarter earnings call in August, CEO Chris Cocks confidently stated, “We will likely make more money on Baldur’s Gate 3 than we have made on all of our film licensing for the last five to ten years, combined.” This includes highly anticipated movies like Dungeons & Dragons: Honor Among Thieves, as well as recent entries from the Transformers and G.I. Joe franchises.
In a research note, Jefferies analyst Andrew Uerkwitz expressed his expectation that Hasbro management would provide further details on the revenue projections related to videogame ventures when disclosing the third-quarter results. He expressed a positive bias towards management commentary specifically regarding Wizards of the Coast.
Although not casting a literal magic missile, Baldur’s Gate 3 is proving to be an influential asset for Hasbro, transforming the game for the company and igniting new opportunities.
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