D&D layoffs

GeekWire informs of New round of layoffs at Hasbro impacts Wizards of the Coast — read CEO’s memo to staff:

Employees at Renton, Wash.-based gaming giant Wizards of the Coast were affected by a new round of layoffs at its parent company, Hasbro.

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As per its October earnings report, Hasbro’s overall revenue has been on a decline, despite Wizards of the Coast’s continued growth.

TechCrunch reports Hasbro to cut 1,100 jobs despite Dungeons & Dragons thriving:

Hasbro’s overall revenue declined 10% year over year. But, Hasbro owns Wizards of the Coast (WoTC), the company that makes Dungeons & Dragons (D&D) and Magic the Gathering, which brings in over a billion dollars each year. In the division of the company that runs WoTC and digital gaming, revenue is up 40% year over year to $423.6 million, netting a $203.4 million operating profit.

I would never understand why choping into a division that work better than the rest is a good measure. Why cutting off their inertia?

Hasbro finds itself at an odd crossroads — its toys business is declining, yet it suddenly has an unexpected cash cow on its hands in Wizards of the Coast, which it bought 24 years ago.

The toy market is shifting. Should Hasbro invest more in video games to supplement D&D and Magic the Gathering which remain valuable to the point of a heist?