Hasbro Pursues Tariff-Free Toys Due to Continuous Magic: The Gathering Card Sales
Hasbro's in a lucky spot when it comes to the recent tariff hullabaloo, and their CEO, Chris Cocks, isn't shy about saying it. In a recent investor call, he declared their company as being "well-prepped" for the current global trade clusterfuck. Here's why.
You see, most of Hasbro's game biz is digital or domestically produced. Even their board game division, home to the mighty Wizards of the Coast, boasts a low tariff profile. That's because Wizards handles the epic Dungeons & Dragons and the ever-popular Magic: The Gathering. The domestic stuff's stationed in Texas and North Carolina, and international manufacturers are either in Kyoto, Japan or Europe—both tariff-exempt zones for now.
Wizards' Japanese and European production minimizes tariff exposure, but China's not left out completely. It's still a "heavyweight manufacturing haven," especially for the boxed sets of D&D, the only Wizards import hailing from China. Cocks acknowledged that they've been pulling some complex logistics to navigate these tariff waters, and he'd love a "more foreseeable and favorable U.S. trade policy environment."
He's a big fan of The Toy Association's plea for zero tariffs on toys and games worldwide—either on exports or imports. He also stressed that tariffs lead to pricier consumer goods, potential lost jobs, and decreased profits for shareholders. Despite the resilience of their games and licensing businesses, prolonged tariff conditions could create structural costs and market chaos.
But worry not! For now, Hasbro's taking the tariff winds in stride, especially when it comes to their Wizards division. Magic's Q1 2025-2026 results show a "booming business" for the card game, which has much to do with the upcoming Final Fantasy crossover in Universes Beyond set, launching June 13. It's already breaking records as the best-selling Magic set ever, thanks to pre-orders.
So, there you have it! While Hasbro as a whole grapples with China's tariffs, the Wizards of the Coast division seems to be just fine, with Magic: The Gathering thriving amidst the tariff strife. As for Marvel, Star Wars, Star Trek, DC Universe, and Doctor Who—well, that's another story! Stay tuned! 😉
- Despite the ongoing tariff challenges, Chris Cocks, the CEO of Hasbro, expresses optimism about the company's future, particularly in the digital and domestically produced game sector.
- The Wizards of the Coast division, a significant part of Hasbro, has a low tariff profile due to its production facilities in Japan and Europe, minimizing tariff exposure.
- The upcoming crossover between Magic: The Gathering and Final Fantasy in Universes Beyond set, launching in June, has contributed to an unprecedented boom in sales for Magic, making it the best-selling Magic set ever.
- Despite the success of Magic: The Gathering, the tariff situation could potentially affect other Hasbro sectors, such as Marvel, Star Wars, Star Trek, DC Universe, and Doctor Who, creating structural costs and market chaos if prolonged.
