A Magic: The Gathering card is displayed on a mobile phone during a weekly tournament at Uncommons hobby store in New York, US, on Thursday, June 27, 2019. Photographer: Mark Abramson/Bloomberg via Getty Images
Mark Abramson | bloomberg | Getty Images
Hasbro She defends her strategy because of the popular Magic: The Gathering.
In a talk hosted by UBS on Thursday, the gaming company refuted criticism that it’s printing too many card decks for the soon-to-be billion-dollar brand.
The comments come nearly a month after Bank of America downgraded Hasbro to an underperforming Buy, Saying the company is “killing a golden goose“And we could see a 34 per cent drop in share price due to her mismanagement of the Wizards of the Coast unit which includes Magic.
Players are increasingly being ripped off by a slew of new issues flooding the market and driving down the secondary market values of the cards, said Jason Haas, who wrote the Bank of America report.
Speaking Thursday, Wizards of the Coast unit chief Cynthia Williams said Hasbro had no indications of a significant decline in interest in the game’s products.
“There is no evidence that magic is overprinted,” she said.
Williams said the company usually publishes its notable releases of Magic: The Gathering card in two-month intervals. But it said in October that supply chain issues had led to two batches being launched at the same time.
She said the cadence of releases will return to normal in 2023, with major collections released every two months and small collections sprinkled in between.
In the game, which can be played in person or online, players use cards to cast spells, use artifacts, and summon creatures to defeat their opponents. Rare and powerful cards can gain value in secondary markets as players seek to boost their decks for tournament play or personal collections.
Regarding secondary market pricing concerns, Williams noted that Hasbro does not make money reselling cards and that if prices for recently released products go up too much, it means “we’re not adequately meeting customer demand and making millions of gamers unhappy about it.” Their ability to get the cards they want to play.”
She said Hasbro prints and reprints the cards on demand during pre-sales and once the product is released.
“Like any market for any other collectible products, some individual products and cards become more collectible than others and values can change over time due to many external factors, many of which are completely unrelated to the number of cards,” she said.
Hasbro CEO Chris Cox, who was on hand for the talk, also addressed concerns about potential price increases, as the toy industry prepares for inflation pressures.
Cocks said the company has taken pricing action for about half of the Magic line — something Hasbro hasn’t done in 10 years — mostly because paper costs have skyrocketed and demand for presses has grown in the trading card market.
But Cox said he doesn’t think raising prices on Magic cards is the answer to expanding the business in the long term.
“At the end of the day, it’s about growing our player base,” he said.
Hasbro’s most active magic players are those who play online and in person at local toy stores or with friends. Williams said the company sees most of its new players coming from the online community to local hobby shops to buy physical cards.
She added that product expansions, such as cards based on popular franchises like Lord of the Rings and Doctor Who, could help her tap into fan bases outside of the Magic universe.
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