“We remain especially cautious on Hasbro’s Wizards segment given its over-monetization of Magic. Wizards recently tried a similar tactic with D&D — proposing changes to its licensing agreement which led to substantial pushback from the community including calls to boycott the D&D movie,” BofA explained. […] “We’ve spoken with several players, collectors, distributors and local games stores and have become aware of growing frustration. The primary concern is that Hasbro has been overproducing Magic cards which has propped up Hasbro’s recent [earnings] results but is destroying the long-term value of the brand,” Bank of America analyst Jason Haas wrote in November. The oversupply of Magic cards means “card prices are falling, game stores are losing money, collectors are liquidating, and large retailers are cutting orders,” Bank of America explained. The bank names “weak fan engagement with Hasbro’s brands” and “fading appetite for Magic releases” as key downside risks for the stock.
Read more of this story at Slashdot.