Magic: The Gathering Release Fatigue Sends Hasbro Stock Plunge

Bank of America “double downgraded” Hasbro’s stock, attributing the sharp drop in shares to the release of fatigue surrounding Magic: The Gathering.

On Monday, Bank of America downgraded Hasbro to “underperform” from “buy.” Previously, shares fell 7% to $58.65, a far cry from their June 2019 peak of $124.

According to analysts at Bank of America (via Investing.com), much of the decline is due to ongoing concerns about Hasbro’s best-selling product and its “first billion-dollar brand.” Since 2019, Wizards of the Coast has ramped up production on the game, releasing more sets and products, such as Commander Decks and Secret Lairs.

That tactic now appears to be backfiring, as the analyst puts it: “We’ve spoken to several players, collectors, retailers and local game stores and are aware of a growing sense of frustration. The main concern is that children Overproduction of Magic cards by Hasbro has bolstered Hasbro’s recent performance but is destroying the brand’s long-term value.”

This oversaturation of Magic has also been credited with the increasing popularity of Commander, which lets you use nearly every card in the game’s history, not just the newest set. The drop in aftermarket prices for recent releases is also a concern, as “increased supply has caused aftermarket prices to plummet, causing distributors, collectors, and local game stores to lose money on Magic.” As such, we expect them to feature in future releases. Will order less product. ”

One last thing Bank of America mentioned is the recent 30th Anniversary Edition, which offers four booster packs for a whopping $999.99. This was heavily criticized by the community, with Bank of America saying it was “too” expensive, causing collectors to drop out of the game “now that Magic’s rarity value is in question”.

Hasbro has yet to comment on the damn report, which confirms what many players and content creators have noticed over the past few years. Last year there were 73 versions, including secret lair drops that were only available directly from the website. Comparing that to 2017’s 14 makes it clear just how much the Wizards and Hasbro are pushing Magic: The Gathering.

While it’s nice to see your favorite games gain support and become the top-performing brand in a company as big as Hasbro, it’s definitely exciting to keep up with. You rarely have more than a week or two to enjoy a product before the next one comes out. The end result is an endless hype cycle with no way out for players who just want to play Magic casually here and there. It also took a toll on the game’s content creators, who felt burned out and considered leaving the game due to the Wizards’ relentless pace.

Interestingly, many of the community’s complaints are backed up by financial analyst data — from release frequency to the high price of the 30th-anniversary edition. With any luck, this report will convince Hasbro that Magic’s success isn’t about putting out an endless supply of cards and hoping a lot of people buy a few, but about creating a game that people want to play and collect.