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  1. #1

    Star Wars toys dragging Hasbro down???

    In late '98, Lucasfilm bought 1.6 million shares of Hasbro at 35 a share. Today they're worth literally half that. So why is it that Hasbro expected a noticable revenue decline specifically from Star Wars this year? I didn't make this news up, it came from Hasbro themselves. SSG posted the current element of that news today: http://www.figures.com/databases/act...ow_article=777
    and that news was from a Hasbro press release which was also added to the Business Wire.

    So what's up with this? Also, were the Star Wars Playskool sets included in the part of the press release that said that Playskool was among the Hasbro lines that offset the Star Wars line's losses?
    Darth Vader is becoming the Mickey Mouse of Star Wars.

    "We named the dog 'Chewbacca'!"
    The use of a lightsaber does not make one a Jedi, it is the ability to not use it.

  2. #2
    Non movie year means nothing driving sales up.

    Thats the excuse anyway.

    Batman hasnt had a movie for a while but hurmmmmm

  3. #3
    I would have thought that issue would have been factored into their original estimates of the SW line's take though.

    Batman for Hasbro also did very badly recently, so DC and Hasbro split up their union.
    Darth Vader is becoming the Mickey Mouse of Star Wars.

    "We named the dog 'Chewbacca'!"
    The use of a lightsaber does not make one a Jedi, it is the ability to not use it.

  4. #4
    No mention of their failure to provide new stock in a timely fashion to the major retailers throughout the first 5 months of this year being a factor in decreasing Star Wars revenue (and yes, I know it's "push pull", the retailers ordering less = less emphasis on newer waves being shipped).... the comments sounded like the drop was an expected thing. I wonder if that's because of the distribution problems, or if the entire first few months of this year were planned out (saving money on distribution in exchange for the lost revenue).

    I think I'd like to hear a little bit about the "strategy" involved in marketing Star Wars, what do they take into consideration? How educated are they about the problems with the hobby as the (often well informed) collectors see them? Do they care?
    GOLDEN DEUCE AWARD WINNER & MABUCON ATTENDEE 2008

  5. #5
    Let's not forget that SARS had a profound effect on the shipping of new stock. Confidence was knocked in anything orient related. A kind of global panic ensued for the first couple of months after the outbreak. It must have made a significant impact on the toymakers who have their stock produced in the orient.

  6. #6
    I read the story too, and it was informative. Initially this sounded like more fodder for Hasbro bashers, but in fact it wasn't. The Star Wars line is a huge cash cow for Hasbro, but only in movie years. In non-movie years they are still paying the same price for the license but not brining in the kid dollars (not sure what kids are spending there money on this summer). This should be more proof that collectors a lone cannot support the Star Wars brand.

    Of course Hasbro planned for this. They aren't a new company. They knew this would happen. I really think that some people (certain people) must think that Hasbro is run by a bunch of monkeys; buffoons that have no clue on how to do anything. This is a grave error and frankly makes these accusers seem dim. Hasbro has brilliant people working for them. These people went to college for many many years. These people specialize in selling, marketing, and promoting toys to children of all ages. Yet some people here would have you believe that Hasbro has lost this edge and doesn't know what to do next. That's poppy **** if I've ever heard it. The rest of the year is going to be very exciting for Star Wars fans. There are tons of new product and old favorites coming out. Yet that doesn't seem to be enough.

    Here's one collector who is excited to see what Hasbro has in store for us next .
    If you want to find it you have to shop.

  7. #7
    Jargo, if that was accurate, wouldn't it affect EVERYTHING from Hasbro equally since it all comes from Asia?


    Sure, this is a non-movie year, but the drop comes on the heels of a movie year AND if this was such a routine hit, why even mention it specifically?


    Icatch, I am glad you are excited about what's coming for the line. However, I disagree about the effectiveness of the Hasbro SW brand and its employees, IMO the Saga line was a step backwards in terms of quality and the company has had to buy back tons of unsold product from retailers twice in the last year. Hasbro as a company has also been hit hard from its competition-buying frenzy of the past few years, their sales were down and they had to liquidate their Hasbro Interactive division to get quick cash to fix it. They also closed the divisions responsible for the popular POTJ line (Galoob and Kenner divisions), and then had to change their policies so no 1 brand could be more than 10% (or something like that) of their company so if it tanked (like SW and Batman did IIRC) it wouldn't hurt the company. Basically, I think that just because a big company is big doesn't mean it's still as good as what got it there. So you may feel that people who see the company as being "run by monkeys" seem dim, but the polar opposite viewpoint could be come off as equally blind.
    Darth Vader is becoming the Mickey Mouse of Star Wars.

    "We named the dog 'Chewbacca'!"
    The use of a lightsaber does not make one a Jedi, it is the ability to not use it.

  8. #8
    Quote Originally Posted by JediTricks
    So why is it that Hasbro expected a noticeable revenue decline specifically from Star Wars this year?
    It looks to me like they simply predicted that they wouldn't be making as much money off of Star Wars for this quarter. No doubt and for whatever reason they saw the lull coming and decided to tighten their belts to make it through. I'm laughing at how they toot their own horns by giving "certain core product lines" credit for helping offset their predicted decrease in Star Wars related revenue. I'd just assume that most people who couldn't find one thing simply ended up spending their money on another. Looks to me like a case of nothing ventured, nothing lost. Not exactly the kind of thing that would make me rush out and buy up Hasbro stock, but it would make me a little less nervous if I already owned 1.6 million shares. (Don't forget, our economy is in a "slump" so any good news really is good news. They're obviously eager to talk themselves up and this is at least something to run with.)

    Did Lucas buy that stock or was it something he got as payment for giving Hasbro the license?
    plasticfetish.net

  9. #9
    Well... the point is, and correct me if I'm wrong-- they can't make any money of things that aren't available for us to buy!!!
    OK... I BLOG. YOU READ. at http://jedipartner1967.livejournal.com
    **Steven Sterlekar (1969-2001)**

  10. #10
    Quote Originally Posted by JediTricks

    Icatch, I am glad you are excited about what's coming for the line. However, I disagree about the effectiveness of the Hasbro SW brand and its employees, IMO the Saga line was a step backwards in terms of quality and the company has had to buy back tons of unsold product from retailers twice in the last year. Hasbro as a company has also been hit hard from its competition-buying frenzy of the past few years, their sales were down and they had to liquidate their Hasbro Interactive division to get quick cash to fix it. They also closed the divisions responsible for the popular POTJ line (Galoob and Kenner divisions), and then had to change their policies so no 1 brand could be more than 10% (or something like that) of their company so if it tanked (like SW and Batman did IIRC) it wouldn't hurt the company. Basically, I think that just because a big company is big doesn't mean it's still as good as what got it there. So you may feel that people who see the company as being "run by monkeys" seem dim, but the polar opposite viewpoint could be come off as equally blind.

    Your statements are interesting. First off you are correct that if I feel that Hasbro is run by a bunch of "toy gods" then I too am just as blind. I belive that the company is somewhere between gods and monkees . Where in the spectrum I do not know.

    Can you explain what you know about the department that was responsible for POTJ and what you know about thier closeing. From my understanding Kenner was bout out long ago and certainly way befor POTJ. I agree that POTJ was a great line (best to date I suppose), but it was also more expensive and many of the characters had low play value. Many of the Saga figs are still very nicely designed, and have high play value. Even if we don't like the buttons and the magnets (kids might).

    Hasbro haveing to buy back product is of course thier fault. They flooded the market last year and never really recovered. I knew this may be a problem, becasue a week after AOTC premired there was something like 50 different figs avalable. No movie or toy line can support numbers like that. They seem to be paying for this mistakes, and the same figs we bought for $7 on April 16th 2002 can now be bought at KB for $1.99. Sucks to be us .

    We as collectors sometimes have a blind eye. Sure we know how to collect and what we see at the many stores we frequent. Still, we do not know what it is like to run a major devision of a major toy company. If you ask me, limiting any one brand to only 10% is very smart. No one can predict how well a toy will do, and if it does tank then thier butts are covered.

    We'll see how this all plays out. What worries me most is if what all the nay sayers are saying comes true, than this hobby will be even more difficult, thus makeing more nay sayers. So, take that as you may.
    If you want to find it you have to shop.

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