Hasbro Seeks Exemption from Tariffs as Sales of Magic: The Gathering Cards Remain Robust
Hasbro's iconic gaming division, Wizards of the Coast, is riding the waves of tariffs relatively unscathed, thanks to a shrewd mix of digital games and domestic manufacturing. The company's bigwigs aren't exactly shaking in their boots, with CEO Chris Cocks stating confidently that the company is "well positioned" amidst global trade chaos.
During a recent investor call, Cocks pointed out that the games division is mostly digital or homegrown, save for the occasional board game. Wizards of the Coast's powerhouses, Dungeons & Dragons and Magic: The Gathering, have a significantly low tariff exposure, primarily due to their domestically-based supply in Texas and North Carolina. The international manufacturers for D&D are situated in Kyoto, Japan, and Europe—both areas currently exempt from the tariffs.
China, the country bearing the brunt of the tariffs, still remains a major manufacturing hub. Nevertheless, China is the sole source for the imported D&D boxed sets. Cocks acknowledged that the company's been juggling logistics, calling for a more stable and favorable U.S. trade policy climate. Hasbro, along with the Toy Association, advocates for zero tariffs on toys and games globally, whether on U.S. exports or imports.
The tariffs, if prolonged, could potentially increase consumer prices, cause job losses, and dent profits for shareholders. However, for now, Hasbro's not fretting about tariffs impacting its Wizards products, especially Magic, which experiencing a surge in business.
Cocks attributes Magic's Q1 2025-2026 success to its continued strength in licensing, particularly the upcoming crossover with Final Fantasy. The Universes Beyond set releases on June 13, and pre-orders already make it the best-selling Magic set ever.
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- The international manufacturers for the low-tariff exposed games Dungeons & Dragons and Magic: The Gathering are based in Kyoto, Japan, and Europe, providing Hasbro with a competitive edge in the technology industry.
- During a recent investor call, Hasbro's CEO, Chris Cocks, emphasized the company's focus on digital games and domestic manufacturing, revealing plans for a potential crossover between Magic: The Gathering and Final Fantasy in Q1 2025-2026.
- As the tariffs continue, Hasbro, alongside the Toy Association, advocates for a zero-tariff policy on toys and games in the global finance and investing business, aiming to ensure a stable and favorable trade policy climate.
- According to Cocks, the increased popularity and success of Magic: The Gathering in the future, due to its upcoming crossover with Final Fantasy, may encourage new investments in the gaming and technology industry, while maintaining the company's dominance in the entertainment and business sectors.
