Online
Chat with Peter Adkison
(CEO of Wizards of the Coast)
Sept
10th, 1999 - Hasbro & The Future Wizards of the Coast.
wotc_peter
Hi there everyone. Welcome to this chat session. I'm not going to
start with a big speech or anything. I think it's easier, and less
typing for me, if we go right to Q&A. So, fire when ready!
Roblin
How does the sale affect the chat room site here?
wotc_peter
It won't affect the site at all.
Leonardh
Do you feel that you will be able to resist any changes that Hasborg
will attempt to make?
wotc_peter
Hopefully Hasbro and WotC will agree on any changes and that any
changes made will be in the best interests of everyone, especially
y'all.
trick
TSR NOVELS - Although I am no longer a big player of the game, I
love the novels. Will you continue to put out these great books
in the FR and DL series, or will Hasbro force to focus more on the
games.
wotc_peter
We will absolutely keep doing novels. In fact, Hasbro loves this
part of our business and we may be able to do some children's novels
too based on some of their properties, but that will not hamper
our game novels in any way.
tenzil
Any clue what kind of mass-marketing plans Hasbro's going to help
you folks get in place? I assume that D&D will find its way
back to Toys R Us , but beyond that sort of thing...? GA
wotc_peter
We actually have developed pretty good broad market capabilities
here in the US on our own. We've been using Pokemon as leverage
to get D&D and Magic into all sorts of places. Where Hasbro
can help the most on this front is in some of our international
markets. For example, Canada 7-11 carries the intro D&D boxed
set now.
Nonsanity
It has been stated that Hasbro will let WotC be as it was, but we
all know there will be SOME interaction due to the merger.
wotc_peter
Of course. We're not naive enough to think there will be NO changes.
Nonsanity
Do you have any thoughts on the changes Hasbro might require of
Magic or D&D to blend with its more "family" image?
Or were changes like the decline
of "devils" and "demons" already the order of
the day from WotC itself?
wotc_peter
Hasbro does not intend to have us change the image of Magic or D&D.
Hasbro has some pretty dark stuff in its Hasbro Interactive division
already, so it's cool.
Nephanor_of_Fraal Since Habro has a history
of producing cross computer platform software, like their Monopoly
game, will this mean that the Core Rules CD-ROM might eventually
be made in a Macintosh format, using Hasbro's programming resources?
wotc_peter
Possibly. I'm not sure. Hopefully they'll make the decision intelligently,
which is, if the market is there to do it profitably, do it.
Akoss
Hi Peter. Now if I am to understand correctly WotC will now have
access to Hasbro's distribution channels... (big retail chains?).
Will this have a positive impact on the timely release of products
up here in Canada? If so, how soon?
wotc_peter
I don't think Hasbro's distribution capabilities will have much
impact here in the US. Remember, if a product isn't suited for the
mass market, it's not going to sell. Hasbro can help us open doors,
but the trick is to make it sell, and they're not going to be able
to help much with that.
Calla
Peter, Hasbro stock (ticker: HAS) has been lagging the S&P 500
for the last 12 months. Lately it has been trading below both its
50 and 200 day moving averages. How does Hasbro see this acquisition
of WotC affecting their basic stock price and overall company revenues
in both the short and long term? Thanks...
wotc_peter
They believe it will have a positive effect on earnings in 2000
and that the deal will be accretive. They also see the acquisition
as very strategic for the long term.
vogless
Is the content of the products going to be altered or "towned
down" to suit young players? or will the game continue as is?ga
wotc_peter
The content of the products will not be altered. Hasbro does not
want us to go off the deep end, but they draw the line at about
the same place we do, so it shouldn't make a difference.
VEKNRobert Peter, congratulations
on the sale. Can you update us on the status of your back listed
TCGs, specifically Vampire: the Eternal Struggle and what impact,
if any, will the Hasbro purchase have on the backlisted games support.
wotc_peter
No impact. All our TCGs are in one of three categories: actively
supported, classic, or dead (not the technical terms). Active are
Magic, L5R, etc. Classics are V:TES, Spellfire, etc. Dead are Blood
Wars, C23, etc.
My goal is that the classic games
see a miniature expansion (40 cards or so) once every two years.
We probably lose money on this, but it's a way of supporting a good
solid game that the fans care about. And we care about, too.
Qucalion
How does Hasbro view the RPGA?
wotc_peter
Hasbro LOVES our whole organized play program (DCI, RPGA, Pokemon
league, etc). They think it's amazing. If anything, I'm going to
have to fight to keep them from wanting us to do this for Monopoly
and other Hasbro games!
TheHans
How will the sell out effect the Interactive Encyclopedia product
that is in development or the Apprentice product from Dragonstudios.
Also, will WotC/DCI offer online tourneys for the interactive encyclopedia?
wotc_peter
The sale should only HELP our electronic products. Hasbro is way
ahead of us in their interactive products capabilities so here's
a place their distribution and marketing should really help us.
Also,
I made it a condition of the acquisition
that our guy, Bill Dugan, would still manage all the electronic
properties product development, so we keep control of the content.
It's a real win-win.
CreamedCorn
How will this affect the Pro Tour and PTQs? I know that the pro
tour does not make money currently, will this continue?
wotc_peter
This won't have any affect on the pro tour, PTQs, etc. They understand
that this is a critical part of the marketing mix for our products.
When I call it marketing they instantly understand and don't care
how much we spend. (just kidding!) :-)
Wiat_the_Odd I know its preliminary,
but do we foresee tie-ins across the Hasbro product line? (ie, action
figures, CD's toys, etc.) Obviously, they'd like to expand the market
and the "target" audience, but will that lead to a "Lite"
intro version of D&D? Heh, I'd buy a copy of D&D Monopoly
wotc_peter
Yes, we definitely see some product tie-in possibilities. While
most of the people on this list probably wouldn't get too excited
about a Pokemon RPG, hopefully we can all agree that it would be
an excellent opportunity for bringing kids into hobby gaming, kids
that will hopefully grow up to be true hobby game fanatics.I'm very
sensitive to keeping true to the brands. We won't do anything silly
(where it's not warranted).
CarrionCrawler
{public msg} Have Hasbro and WotC entered into strategic marketing
and creative planning for the long term outlook of the company?
Are there projections as to the growth of the company through cross-marketing
(action figures, better licensing rights, etc.)? Would it be possible
to increase mass market exposure in this manner? Hasbro is normally
considered a "family entertainment" company, while WotC
is not. Has Hasbro acquired WotC for diversification and entering
the "non-family" entertainment market? What sort of long-term
growth beyond FY2000 does Hasbro expect from the acquisition?
wotc_peter
Hasbro has no desire to dilute our appeal to the hobby game market.
They do not want to tone us down, but they see this as a way to
broaden their influence into a new category of gaming. Yes there
will be some cross-marketing opportunities, but only where it's
reasonable. Nothing forced.
Prince_O_Swords . 1.)What about Hasbro's
treatment of Avalon Hill? Any Chance of the same thing happening
to WotC? 2.) What about the Wizards and the Gamekeeper stores? how
will this effect them?
wotc_peter
The Avalon Hill situation is very different. I don't think there's
much to compare. Regarding retail, Hasbro fully supports what we're
doing in retail.
Zeki
Will the current WotC 3e team stay in place for the release of 3e
(including Gygax) and what about further development of 3e sourcebooks?wotc_peter
Hasbro will have no interference with 3E. If someone on the team
doesn't want to work for Hasbro, maybe they'd leave, but I suspect
it'll go forward as planned.
TheGameReport
WotC's previous forays into boardgaming (RoboRally) weren't, as
i understand it, financially successful. Consequently, board game
development was largely dropped. Hasbro, on the other hand, knows
how to make a profit on board games. How will the merger affect
the WotC R and D team, notably Richard Garfield? Will WotC be producing
more board games in the near future?
wotc_peter
The entire hobby game industry has suffered from the fact that the
only games that make money are ones with what we call a repeat purchase
model. That is, games like D&D and Magic where the typical customer
ends up purchasing several products per year.
The reason for this is that the
market is so tiny, it takes many purchases per customer to keep
the business going. So the only truly effective business model for
single purchase games is to market them to the mass market, backing
them up with distribution leverage and TV advertising. This is true
whether it's WotC or Hasbro.
WotC will continue, in all likelihood,
to focus primarily on repeat purchase games, and let Hasbro focus
on mass market single purchase games. Although Richard definitely
wants to work with Hasbro some on the latter.
Btw, the reason Pokemon is so
phenomenal is that it's the first ever repeat purchase model mass
market table game.
(Richard is very excited about
this deal, to work with Hasbro mass market games division, and with
Hasbro Interactive.)
Banky I really like the line
of Family Games like Guillotine and Filthy Rich. What's the plan
for this line of games, or had it already been deep-sixed even before
the purchase? GAI really like the line of Family Games like Guillotine
and Filthy Rich.
wotc_peter
{public msg} We don't make money on those games, but we also learned
that we don't really lose money on them either, as long as we don't
let marketing get carried away spending lots of money on them. We
plan to continue doing one or two of them each year. Hopefully we
can work with Hasbro to make them more successful than before.
mattv999
What is going to happen to Dungeon Magazine? And will the Hasbro
CEO be joining you at PTs now?
wotc_peter
No effect on Dungeon Magazine. And I am trying to get some of the
Hasbro execs to come to at least one pro tour sometime to see what
they're all about, but I'm quite sure Alan won't be joining me at
them on a regular basis.:-)
Poljack
Just wanted to say: Congratulations on the big sale! I think that
it can only be a Good Thing, and not just for WotC. Any thoughts
on how this sale might affect the RPG / CCG industry as a whole?
wotc_peter
Thanks! I think it will have a small positive effect in that it
will help us create introductory products, synch them up with mass
media (TV, movies), and distribute them better. And when I say introductory
products I'm t hinking of things that introduce hobby games in a
broader way, like the Pokemon RPG we'd like to do (but it's not
official yet). Then we keep brands like MTG and D&D true to
the hard core, but have ways of funneling kids to those products
as they mature. I think recruting young kids into hobby games is
the biggest challenge that faces this industry and this could help
significantly.
eggli
How about the Asia market? Will Hasbro open it with their resources?
I really want to se D&D sells in Asis area.
wotc_peter
Yes, I'm sure they can help in Asia the same way as here. In fact,
there are probably MORE opportunities for them to help us in the
international markets.
Vonfirmath
Why did you allow yourself to be bought by Hasbro? Rumor going around
is that WoTC was losing money big on the retail side (getting greedy
was the exact terminology I heard) and had to be bought to stay
in business...
wotc_peter
{public msg} Nothing could be further from the truth. Retail is
making tons of money. In fact, WotC is making tons of money. I've
just always believe in selling while you're doing well instead of
selling when you're under duress (I saw from the other side how
that works, with TSR). This was a chance to make a lot of money
for our shareholders, while allowing me and Richard and the gang
to keep doing what we love to do.
And, frankly, I'm glad to be free
of the burden. After nine years, I'm happy to let Hasbro take over
the responsibility of keeping shareholders happy, and I now just
get to focus on the fun stuff, making games.
There will be very few major changes
in personnel. They've assured me I'm still running the business
with full autonomy. And I'm sure that's true as long as things are
going well. But I'm not naive. It'll be there company so they can
always change their minds. But they are good people. Really. I believe
they honestly value what we do here and want us to keep going on.
ChrisWest
{public msg} Hasbro's interest in online activities is growing...do
you expect to see an increase in online RPGs targeted at new audiences,
such as those at Talk City?
wotc_peter
Yes. Absolutely.
GIJoe666
Will this merger affect WotC's relationship with interplay any?
I for one am satisfied with BG and can't wait for neverwinter nights
wotc_peter
It will not affect our current relationship. We will honor the agreements
in place. (I love BG too, btw!)
Blucher Has Hasbro given any assurances
that it will not buckle in the event of a boycott by certain vocal
groups? (unlikely but possible; say, what happened with Disney recently?)
What do you think their response would be? (I know this sounds like
a doom & gloom question, but it's a legitimate concern for some
people) Thanks, in advance.
wotc_peter
I don't think that Hasbro would buckle any sooner than we would,
if faced with stiff resistance. In fact, Hasbro would have far more
resources (politically and economically) to battle such an attack.
Think of it this way, nothing helps "legitimize" D&D
and Magic more than that they are now owned by a conservative family-oriented
company. This could be quite good.
WyvernGames
Premier store & "game" store distribution: Will Magic
& AD&D become Walmart products as was done w/ Poke'mon?
This will kill privately owned game stores.
wotc_peter
Pokemon was always a mass market game, and we also sell it to the
hobby channel as a second priority. Magic and D&D are primarily
hobby games and the hobby channel will get first priority on them,
mass market second priority.
Prosen
Will the translations and sales and marketing foreign versions of
WoTc/TSR products made by Hasbro and no more by international WotC?
Hello Peter I have a "french" special interest on, that
:)
wotc_peter
{public msg} Our current international operations will continue
to translate, sell, and market our products.
lysander1
You've talked a lot about the positive impact the acquisition will
have on WotC properties, but what about the negative impact? Hasbro
is emblematic of all that is cheesy and mass-market, and associating
it with AD
wotc_peter
Since we'll be doing the marketing on our products, I don't think
the marketing will get any cheesier. :-) No, Hasbro won't be be
changing D&D.
GatorGeek
When you say that Hasbro supports your retail program, does this
include things like not letting stores be Premier stores if they
are too close to a GameKeeper
wotc_peter
We will manage the premier stores ourselves, so whatever you like/dislike
about that program you can credit/blame us for. As usual.
Jherek
Do you have also personal reasons to sell WotC ? Like taking the
money, having fun making games and living the sporting life ? :)
wotc_peter
Jherek, to tell you the truth, I already make a lot of money just
off my salary, so I have lots of fun already. I think I'd go crazy
if I didn't work. No, it wasn't for me, it was for the other 300
shareholders.
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