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The Impact of Baldur’s Gate 3 on Hasbro

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Videogame players have eagerly immersed themselves in the captivating world of Baldur’s Gate 3, and the financial impact this game could have on Hasbro is far from fictional.

Ever since its release on Aug. 3, Baldur’s Gate 3, the videogame adaptation of Dungeons & Dragons (D&D), has taken the gaming world and social media by storm. Developed by Larian Studios, this game presents an opportunity for Hasbro to thrive due to its ownership of the widely popular tabletop version of the role-playing game through its Wizards of the Coast unit.

In the traditional version of D&D, participants gather around a table assuming various character roles, such as wizards and fighters, as they embark on adventures in an imaginary world. Through dice rolls, they navigate scenarios like casting spells, battling magical creatures, and even negotiating fictitious inn stays.

The videogame eliminates the need for players to physically gather around a table with character sheets, maps, and figurines. Baldur’s Gate places gamers in the enchanting realm of Forgotten Realms, a setting within the Dungeons & Dragons universe. Players have the choice to embark on this adventure solo or team up with a group of up to three others. Just like in the original game, they engage in battles against mystical beasts, form relationships with characters, and unleash their magical abilities.

This game has generated substantial buzz in pop culture, as evidenced by the staggering 1.7 billion views of the hashtag #baldursgate3 on TikTok. The surge in popularity introduces D&D to a new audience, a crucial milestone following the recent release of the D&D film and as the company prepares for the 50th anniversary of the role-playing game in 2024, according to James Zahn, editor in chief at The Toy Book.

The wider exposure to D&D through Baldur’s Gate 3 is expected to drive increased revenue as fans delve into the tabletop game or purchase related merchandise, Zahn added.

Notably, Hasbro’s direct benefits from the game extend beyond its growing player base. Larian Studios developed Baldur’s Gate under license from Hasbro’s Wizards of the Coast division, which holds ownership of D&D and the popular card game, Magic: The Gathering.

Wizards of the Coast and Larian Collaboration Set to Boost Hasbro’s Revenue

Wizards of the Coast’s recent partnership with Larian has generated much anticipation, although the specifics of their licensing agreement remain undisclosed at this time. When asked to comment on the arrangement, Wizards of the Coast did not provide an immediate response. However, experts foresee substantial financial gains for Hasbro through the release of “Baldur’s Gate 3.”

Industry analysts surveyed by FactSet predict a significant boost in revenue for Wizards of the Coast and Digital gaming in the third quarter. The estimated revenue for this period is $390 million, surpassing the figure of $304 million from the corresponding period last year. Additionally, franchise brand sales are projected to reach $1.02 billion, a notable increase compared to last year’s $814 million.

During Hasbro’s second-quarter earnings call in August, CEO Chris Cocks expressed optimism about the revenue potential of “Baldur’s Gate 3.” He 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 10 years, combined.” This includes revenue from movies such as “Dungeons & Dragons: Honor Among Thieves,” “Transformers,” and “G.I. Joe.”

Analyst Andrew Uerkwitz from Jefferies emphasized his positive outlook for Wizards of the Coast, mentioning that he anticipates more detailed information regarding video game-related revenue when the third-quarter results are disclosed.

Despite these promising prospects, Hasbro is facing a challenge in maintaining its overall revenue. Analysts estimate a decline in third-quarter revenue to $1.657 billion, as opposed to $1.676 billion in the previous year.

To navigate through this situation, Hasbro is refocusing on its core product lines, emphasizing toys and games, and exploring new avenues for consumer engagement. The aim is to build on the sales boom resulting from the pandemic and recover from a challenging holiday season last year, which was marred by inventory issues.

“Baldur’s Gate 3” is proving to be a pivotal factor in transforming Hasbro’s fortunes in the gaming industry.

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The Impact of Baldur’s Gate 3 on Hasbro

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