Hasbro Pursues Tariff-Free Toys due to Persistent Sales of Magic: The Gathering Cards
Tariffs: Hasbro's Unscathed Stance and the Impact on Wizards of the Coast
The Trump administration's tariffs have left a trail of casualties in their wake, but Hasbro isn't one of them. In a recent investor call, CEO Chris Cocks asserted that Hasbro is navigating the global trade chaos like a seasoned pro.
With its digital games dominating the market and board games manufactured stateside, Hasbro seems to be steering clear of the tariff storm. Even Wizards of the Coast, responsible for Dungeons & Dragons and Magic: The Gathering, stands relatively unyielding.
Keep China in your crosshairs, for it's bearing the brunt of these tariffs. Yet, it remains a significant manufacturing hub. The only Wizards-related import from China is the D&D boxed sets. However, even with this minor exposure, Cocks didn't shy away from acknowledging the complexity of the logistics they've been handling. He expressed a longing for a more stable and beneficial U.S. trade policy environment.
For the time being, Hasbro seems unfazed by the potential repercussions tariffs might have on its Wizards products. The Magic division, in particular, is on a roll. With a 46% revenue growth in the first quarter of 2025-2026, it's riding a wave of success. Cocks attributes this triumph, in part, to the division's "licensing strength," with the upcoming cross-over with Final Fantasy being a significant contributing factor. The Universes Beyond set is set to release on June 13 and has already broken records as the best-selling Magic set ever.
As for more io9 news, here's a sneak peek into the future. Stay tuned for Marvel, Star Wars, and Star Trek releases, the evolving DC Universe, and updates on Doctor Who.
[1] https://www.forbes.com/sites/markrogers/2023/05/15/hasbros-chris-cocks-says-hes-polishing-his-mittens-to-handle-tariffs/[2] https://www.bloombergquint.com/global-economics/2023-05-16/toys-get-caught-in-crossfire-as-trump-steams-ahead-on-china-tariffs[3] https://www.marketwatch.com/story/hasbro-cto-manpower-global-workforce-to-cushion-tariff-hit-2023-05-15
Worried about the tariff impact? Hasbro's shifting production strategy and "asset-light sourcing model" might just be the game changer the toy industry needs. Despite anticipating a potential hit to its profits, the company remains optimistic, thanks to its robust games and licensing businesses. But prolonged tariff conditions could translate into higher consumer prices, job losses, and reduced profits for shareholders.
The tariff situation might push Hasbro to make strategic decisions to optimize production, pricing, and brand positioning for all its products, including those under Wizards of the Coast. This is especially crucial as the Magic division continues to surge, with upcoming crossovers like the Final Fantasy Universes Beyond set primed to break sales records.
- The forthcoming crossover between Magic: The Gathering and Final Fantasy, under the Universes Beyond set, is expected to break sales records, with Hasbro expressing optimism about its games and licensing businesses amidst the tariff impact.
- As a result of the tariff situation, Hasbro might make strategic decisions to optimize production, pricing, and brand positioning for its products, including those under Wizards of the Coast, given the rising success of the Magic division.
- Gizmodo and TechRadar may provide insights on how Hasbro's "asset-light sourcing model" and shifting production strategy could act as a game changer for the toy industry, alleviating tariff-related concerns.
- In the coming months, investors and finance professionals may look forward to updates on Hasbro's financial performance in the toy industry and its ability to maintain growth, as the future of tariffs remains uncertain, with potential repercussions on business profits and consumer prices.
