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Baldur's Gate III appears to be keeping Hasbro from going under

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Hasbro Earned About $90 Million From ‘Baldur’s Gate 3’ So Far (Bloomberg)




Baldur's Gate 3, last year's most critically acclaimed video game, has brought in about $90 million since its August release for parent company Hasbro Inc. through a licensing deal.


Made by Belgian developer Larian Studios, Baldur's Gate 3 licensed property from Dungeons & Dragons, a famous role playing game by Hasbro subsidiary Wizards of the Coast.


"As you turn the corner into 2024, in the front half of the year, you're still going to have the tail from Baldur's Gate 3," Hasbro Chief Executive Officer Chris Cocks said on a call with analysts, adding that sales will persist through the year, but at a slower pace than the third and fourth quarter.



As to why BGIII appears to be single-handedly keeping Hasbro in business...



Hasbro now expects to cut $750 million in costs by the end of 2025, up from a previous target of $350 million to $400 million.



Toy company Hasbro reported a more than 20% hit to its fourth-quarter revenue and issued a downbeat 2024 forecast Tuesday morning.

Shares of the company dipped about 5% following the report.


Here’s how Hasbro performed in the fourth quarter compared with estimates from LSEG, formerly known as Refinitiv:


  • Earnings per share: 38 cents vs. 66 cents expected
  • Revenue: $1.29 billion vs. $1.36 billion expected


For the last three months of 2023, Hasbro lost $1.06 billion, or $7.64 per share, drastically wider than losses of $128.9 million, or 93 cents, a year earlier. After major adjustments related to goodwill and intangible assets, the company reported adjusted earnings per share of 38 cents, still well below analysts’ estimates.


For the full year 2023, revenue declined 15% to $1.29 billion, including double-digit sales drops in its consumer products and entertainment segments. Hasbro did see an increase in revenue, however, in its Wizards of the Coast and digital gaming segment, primarily due to licensing revenue related to Baldur’s Gate 3 and Monopoly Go.


The company reduced its inventory by more than 50% compared to the year prior.



Hasbro expects further revenue declines in the year ahead. In the Wizards of the Coast segment, the company expects a 3% to 5% revenue dip, coupled with a 7% to 12% hit to the consumer products business. The company expects overall adjusted earnings before interest, taxes, depreciation and amortization of $925 million to $1 billion.


The company now expects to cut $750 million in costs by the end of 2025, up from a previous target of $350 million to $400 million.


In December, the toymaker laid off 1,100 employees after it had already cut 15% of its workforce earlier in the year.


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