Magic: The Gathering is Hasbro's cash cow

Hasbro played Rampant Growth last quarter. The toymaker reported stellar earnings yesterday, beating Wall Street estimates thanks to its Magic: The Gathering card game bringing in more than $500 million for the first time. The company’s stock ended the day up 8.8%For those unfamiliar with the pain of drawing only lands for three straight turns, Magic has boomed since Hasbro acquired it almost three decades ago. In 2023, Hasbro said the game was the company’s first billion-dollar brand based on annual sales. And this past quarter was its best yet:Magic brought in $545.3 million in Q2, a 32% jump from the same period last year.Execs credited the success to the brand’s Marvel superheroes set released last quarter, which set first-day and first-month sales records.The game has reached 50+ million players since its inception in the 1990s.While the game’s rapid release schedule has been key to driving sales, it has also reportedly overwhelmed some players who can’t keep up. The brand’s next big release, a Star Trek-themed set, is scheduled for November.Looking ahead...Hasbro said it is abandoning many of its video games in production and decreasing spending in the division by at least 25% a year.—MM