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The Vintage Collection / Re: The Future of Star Wars Collecting?
« on: February 26, 2013, 01:28 PM »
This isn't so much about the future of Star Wars, but more about Hasbro's recent past:
The more I think about it, the more I start thinking that between the G.I. Joe - Retaliation line (and the associated movie), along with the Battleship movie might be partially related to the current state of things we're seeing from Hasbro in the Star Wars line. I get the sense that Hasbro getting itself involved (more directly) in the movie business may have been an unwise move, and it may have cost Hasbro a serious ammount of money. You may recall that Hasbro has been trying to get more involved in generating their own media, like movies, television series, etc. Is it possible that this foray into a new business has had a major impact on their toy business?
Look at the movie track record: Battleship was a major bomb. It cost some $200 million to make the movie, and it only grossed $65 million in the US. The international numbers were not impressive. Not a rave success for Hasbro Studios, by any stretch of the imagination. Seeing how this movie was a partnership with Universal, I don't think Hasbro Studios was left completely holding the bag, but they probably dealt with a significant loss in the tens of millions of dollars.
And then there's GI Joe - Retaliation which essentially got pulled from it's original release date last year. It sounds like the movie had major problems and needed to be seriously overhauled. All the while the toy line was released and then there were rumors swirling that the product for the movie was going to be pulled from the shelves.
And then there was the news from the investor conference call that preceded Toy Fair. Hasbro's CEO called on their various units to cut costs and to cut the number of SKU's for each license. Lo and behold, we saw that the Star Wars line has been scaled back considerably with a focus on serious cost cutting. Coincidence? Hmmmm.
Another potential explanation is that the current ownership of Hasbro might be looking to sell the company. Extreme cost cutting like we're seeing is occassionally the hallmark of a company trying to make themselves look as profitable as possible to a potential buyer. All of this is food for thought on the state of things now and in the near future.
The more I think about it, the more I start thinking that between the G.I. Joe - Retaliation line (and the associated movie), along with the Battleship movie might be partially related to the current state of things we're seeing from Hasbro in the Star Wars line. I get the sense that Hasbro getting itself involved (more directly) in the movie business may have been an unwise move, and it may have cost Hasbro a serious ammount of money. You may recall that Hasbro has been trying to get more involved in generating their own media, like movies, television series, etc. Is it possible that this foray into a new business has had a major impact on their toy business?
Look at the movie track record: Battleship was a major bomb. It cost some $200 million to make the movie, and it only grossed $65 million in the US. The international numbers were not impressive. Not a rave success for Hasbro Studios, by any stretch of the imagination. Seeing how this movie was a partnership with Universal, I don't think Hasbro Studios was left completely holding the bag, but they probably dealt with a significant loss in the tens of millions of dollars.
And then there's GI Joe - Retaliation which essentially got pulled from it's original release date last year. It sounds like the movie had major problems and needed to be seriously overhauled. All the while the toy line was released and then there were rumors swirling that the product for the movie was going to be pulled from the shelves.
And then there was the news from the investor conference call that preceded Toy Fair. Hasbro's CEO called on their various units to cut costs and to cut the number of SKU's for each license. Lo and behold, we saw that the Star Wars line has been scaled back considerably with a focus on serious cost cutting. Coincidence? Hmmmm.
Another potential explanation is that the current ownership of Hasbro might be looking to sell the company. Extreme cost cutting like we're seeing is occassionally the hallmark of a company trying to make themselves look as profitable as possible to a potential buyer. All of this is food for thought on the state of things now and in the near future.