Hasbro Stops co-financing movie projects, moves onto gaming and brand licensing

Hasbro, once a dominant player in both toys and blockbuster movies, is undergoing a seismic shift in strategy. Following a series of box office flops and mounting pressures from investors, the company is stepping back from co-financing films and scaling down its film and TV ambitions to focus on digital content and video games. But can this pivot save the beloved brand, or is it a signal of deeper troubles?

 

Box Office Bombs and Investor Backlash

Recent failures at the box office, including the lackluster performances of Transformers: Rise of the Beasts and Dungeons & Dragons: Honor Among Thieves, have caused significant setbacks for Hasbro. Despite their effort to revive fan-favorite franchises, the movies failed to connect with audiences, with marketing criticized as overly childlike and emasculating key characters. The Dungeons & Dragons film, in particular, faced backlash due to the controversial OGL 1.1 policy, which allegedly sparked fan boycotts, leaving shelves stocked with unsold merchandise.

Adding to the pressure, Hasbro is facing lawsuits from investors who claim the company misled them about inventory levels and overproduced merchandise tied to these underperforming films.

Abandoning the Silver Screen

In response, Hasbro is pivoting away from the risky business of co-financing films. Early successes like the Transformers franchise have been overshadowed by recent missteps and failed attempts to reboot franchises such as G.I. Joe. The decision marks a significant retreat from a once-promising cinematic universe strategy, raising concerns about the long-term viability of their iconic toy brands.

A Focus on Gaming and Digital Content

Under the leadership of CEO Chris Cocks, a former Microsoft gaming executive, Hasbro is doubling down on digital content and video games. This shift aligns with changing consumer preferences, as younger audiences gravitate towards digital entertainment over traditional toys. Flagship gaming successes like Baldur’s Gate 3 have demonstrated the potential of Hasbro’s IP in the gaming space. However, the company’s lack of direct control over the game’s development raises questions about the sustainability of this strategy.

Hasbro's CEO Chris Cocks. Image credit: Hasbro

 A Tumultuous Future

The changes come amid internal layoffs, declining toy sales, and criticism that Hasbro is losing touch with its core audience. The transition to a digital-first strategy may be a gamble with no guaranteed return.

Hasbro’s decision to focus on gaming could redefine its future, but it also underscores the challenges of adapting to a rapidly evolving entertainment landscape. Whether this move reinvigorates the company or signals a prolonged decline remains to be seen.

As Hasbro navigates this critical juncture, one thing is clear: the toy giant is betting big on change. Will it pay off? Only time will tell.