Hasbro Pursues Tariff-Free Toys Due to Continued High Demand for Magic: The Gathering Cards
Tariff trade-offs: Hassles faced by Hasbro, specifically its Wizards of the Coast (WotC), have been minimal following the Trump administration's tariff regulations - a brief hiccup which later took a semi-reversal.
During a recent investor call, CEO Chris Cocks aptly expressed their resilience in the prevailing trade situation. With most digital games in their arsenal and domestic production for their board game segment, WotC doesn't find itself in the hot seat. The division responsible for Dungeons & Dragons and Magic: The Gathering (MTG) faces limited tariff exposure. Domestic production sites are situated in Texas and North Carolina, while international manufacturers are located in Kyoto, Japan or Europe - all incidentally exempt from the tariffs.
Astonishingly, China, hit by the brunt of these tariffs, still plays a significant role as a manufacturing hub. The only WotC import from China is their D&D boxed sets. Despite this, Cocks recognized the intricate logistics Hasbro has been tackling and expressed a longing for a more favorable and predictable U.S. trade policy landscape. The Toy Association's vision of zero tariffs on toys and games globally rings true with Hasbro.
Addressing the issue head-on, Cocks stressed that tariffs equal higher consumer prices, potential job losses, and reduced profits for shareholders. However, Hasbro's guidance remains unchanged due to the robustness of their games and licensing businesses, as well as their strategic adaptability. Yet, lingering tariff conditions create long-term costs and market unpredictability.
For now, Hasbro seems unfazed regarding the impact of tariffs on WotC's MTG division. In the first quarter of 2025-2026, the card game witnessed an explosive growth that significantly bolstered its revenue by 46%. The game's strength in licensing is commendable, particularly the upcoming crossover with Final Fantasy. The Universes Beyond set launches on June 13 with pre-orders already claiming the title of the best-selling Magic set ever.
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- In the future, the upcoming crossover between Magic: The Gathering (MTG) and Final Fantasy is expected to bolster Wizards of the Coast's (WotC) revenue significantly.
- Chris Cocks, the CEO of Hasbro, expressed a desire for a more favorable and predictable U.S. trade policy landscape, as tariffs can lead to higher consumer prices, potential job losses, and reduced profits for shareholders.
- Gizmodo might report on the future of the toy and technology industry, as tariffs and trade policies have a significant impact on businesses like Hasbro, with technology developments often intertwined with finance and business.
- Io9 could cover the increasing dominance of technology in the gaming industry, as the game of Magic: The Gathering has seen explosive growth, making it a major player in the entertainment world.
