Yet the company reinvests only 8% of it’s profit. So they are milking magic until it dies instead of building up it’s lore, competitive scene, make some films in mtg settings etc.
That’s just modern capitalism in a nutshell. Buy a brand that has value, reduce the quality, exploit the consumer’s brand loyalty, discard the corpse. Magic is cooked. At some point the “community” will have to take it back or just move on to something else.
Is this a rhetorical trick by comparing revenue to profits or is this actually a legit number? That’s hard to believe. I mean I know mtg is profitable but surely the rest of the company provides some profits.
From their reports, yes, this is the legit number. Apparently in Q1 this year, WotC was something like 103% of their profits because their toys and entertainment side lost them money.
Hasbros profit margin on toys can cost them money to sell anything, Hasbros profit margin on cardboard and ink is 40 to 50% return on cost to produce and sell
This is why I support proxying. Or a community takeover of the game. Hope we can get Hasbro out of there someday but I’m not sure how it would happen. They’re just leeches on the player base.
Holy crap. Think of what % of all of Hasbro WoTC is, profit wise. Then think of what % of that you think MTG is.
spoiler
It’s a LOT more than you think
spoiler
Last quarter, according to Seth, WoTC was ~95% of Hasbro’s profits
Yet the company reinvests only 8% of it’s profit. So they are milking magic until it dies instead of building up it’s lore, competitive scene, make some films in mtg settings etc.
https://youtu.be/dAlF0ej4aVQ?t=2525
Right, bleeding it dry. That’s the worry I have in it
That’s just modern capitalism in a nutshell. Buy a brand that has value, reduce the quality, exploit the consumer’s brand loyalty, discard the corpse. Magic is cooked. At some point the “community” will have to take it back or just move on to something else.
@frank @MysticKetchup
Wow. In Q2 “WOTC and Digital Gaming” was $242 M of $247 M total profits.
And that’s before FF?
No it included FF, I think their financial quarters aren’t aligned with yearly quarters
Is this a rhetorical trick by comparing revenue to profits or is this actually a legit number? That’s hard to believe. I mean I know mtg is profitable but surely the rest of the company provides some profits.
From their reports, yes, this is the legit number. Apparently in Q1 this year, WotC was something like 103% of their profits because their toys and entertainment side lost them money.
Hasbros profit margin on toys can cost them money to sell anything, Hasbros profit margin on cardboard and ink is 40 to 50% return on cost to produce and sell
This is why I support proxying. Or a community takeover of the game. Hope we can get Hasbro out of there someday but I’m not sure how it would happen. They’re just leeches on the player base.