Wizards of the Coast, Who Do You Think You ARE!?!?!?!
In a discussion a while back with a fellow content creator, we stepped into the topic of Wizards of the Coast and their changes to their distribution methodology, specifically their announcement to directly sell products through major digital outlets. There was some discussion about how this affects local game stores. In an effort to build a picture of where WOTC is headed, I submit the following opinion. Keep in mind, these are my own thoughts based on what I have read. They in no way reflect an actual published business strategy or plan from WOTC or Hasbro.
Let's draw a line through a few events that have transpired over the last year.
December 4, 2017: Arena closed beta begins.
September 19, 2018: Announcement of the Arena Creator's Hub.
September 21, 2018: Announcement of direct sales of products through digital outlets.
September 27, 2018: Arena open beta begins.
October 4, 2018: Announcement of MagicFest and the consolidation of the Pro Tour and Grand Prix.
From these items, I can separate WOTC's actions into two lanes.
1. WOTC building up.
2. WOTC circling the wagons.
WOTC building up
Here's what I can piece together as far as WOTC's planning efforts go. First, there is a clear indication that a consolidation of effort is in progress. From their vantage (viewing as far back as 2 or 3 years), they could see several things. Reference article here.
1. A growing esports market (about 15% per year).
2. Riot Games and Activision Blizzard selling game franchises for $10 and $20 million respectively.
3. Magic the Gathering falling behind competitors on Twitch and YouTube.
What these indicators say to me, and what I think they were saying to WOTC, is that Magic the Gathering will not be among the best esports moving into the future unless something changed. As a business, the clear picture of its portion of the market would be quite sobering. In the ever-slipping attention of future generations, you're either growing into or out of their lives. It would appear that Magic the Gathering was the latter.
So how do you turn things around? The initial concern when considering the future of gaming is gamers of course. WOTC needed to appeal to new players in a way that they never had before.
Why won't my son play Magic with me? First, he's too busy playing League of Legends and second, his friends aren't playing it. When Arena was in closed beta, my son told me that he downloaded it because one of his friends sent him a code. He said it was fun and he was learning the game. WOTC targeted my son and got him in a way that I and Magic the Gathering Online never could. They gave Magic the appearance of being new. No easy task for a 25-year-old game.
Next, they needed buy-in from content creators to make inroads into YouTube and Twitch markets. They rewarded popular content creators repeatedly with special gaming days, freebies and help to get their content out there. Additionally, they tried new game formats within Arena to keep people interested. They made it possible for you to win your way into more games without spending any money. In short, they made Arena accessible and content creator friendly. Smart move in my opinion.
Now they needed to make their bread and butter paper game into something more palatable as well. Enter MagicFest. You might scoff at the idea, but I guarantee you...it is probably the BEST idea that they've had in a long time. Your average MTG player rarely has a clear picture of what major events are happening and where they can go to participate. Additionally, if travel is involved, unless that is all they have going on in their lives, they can probably go to a minimal number of events in their lives. At those events they will play Magic, probably lose, then go home.
But what if their event wasn't the only thing happening? What if it included the Pro Tour and possibly any number of other events that could capture the attention of players, content creators and businesses? What if people who don't play Magic started showing up to see what was happening? MagicFest (not advocating the name...withholding judgment...trying it on like a pair of tight shoes to see if my feet will adjust) can turn a normal tournament into a platform to expand beyond its own borders. It can pull in sponsor and advertisement dollars and grow into something that is beyond Magic, much like Comic-Con has grown outside of comic books. Is this a good time to bring up the Magic the Gathering comic book to be released next month?
That brings me to my next point and what I think should be WOTC's primary goal.
Discussions to include esports in the Olympics have been going on for a while, but only recently have we seen actual progress made toward that goal. last year the Olympic Council of Asia said that they would be included in the 2018 games and will be a medal-worthy event in the 2022 games. Three months ago the International Olympic Committee was looking at putting esports on the December agenda for discussions regarding their inclusion in the 2024 Paris games.
And 5 days ago, the Asian Games announced that Hearthstone, among other games was to be included in this year's events.
...
WOTC was right to see that they were not where they should be. Reaching for the 2024 Olympics is the right thing to do. And Magic is a perfect candidate for an international group that shies away from violent games and games that may show images inappropriate for the world stage. The Olympics would be a game changer, not just for WOTC, but for every player and content creator. It washes away all of the problems with public messaging. Children all around the world will see their favorite player from their country play a game with the best in the world and think, "I can do that". Then that kid will download Arena and start playing. It is the great equalizer. Those who medal in events now have something that is really a representation of who is the best in the world. Those who compete will be targeted by sponsors. Those who watch will be targeted by advertisers. Content creators will create content.
The accessibility of Magic will open doors to new markets. You don't need a computer to train. You can't say that for any other game currently on the list to be included in the games.
If this isn't WOTC's plan...it should be. Those who medal will be the heroes of MagicFest 2025.
April 17, 2017: Olympic Council of Asia announces that ESports will be a medal event in 2022. It will also be included in the 2018 games.
July 21, 2018: The International Olympic Committee (IOC) and the Global Association of International Sports Federations (GAISF) host an ESports Forum. ESports is put on the agenda for the December 2018 summit.
October 24, 2018: Asian Games 2018 confirms the inclusion of Hearthstone, League of Legends, StarCraft II, Pro Evolution Soccer, Clash Royale, and Arena of Valor.
WOTC circling the wagons
So, why is WOTC going direct with sales and bypassing our beloved local game stores?
September 18, 2017: Toys R Us declares bankruptcy.
The significance of Toys R Us going bankrupt is enhanced by the current trade war with China. Hasbro, of which WOTC is a subsidiary, makes over half (roughly 2/3) of their toys in China. While toys are not currently targeted for tariffs, this could quickly change as the economic relationship between the two nations descends into compounded retaliatory acts. When Toys R Us declared bankruptcy, this forced Hasbro to make up the distance between toys that could no longer be sold through Toys R Us and their bottom line. While this was a blow, it wasn't seen as a devastating hit. It was merely a hit to consumer confidence. With publicly traded companies, confidence in your business means everything though.
Toys R Us declares bankruptcy and 2 days later WOTC announces direct sales through digital outlets. There's no mystery there. If you want to make up for lost capital, you have to sell big. WOTC is one of the most reliable revenue streams available to Hasbro. Now with direct sales, it will be even more so. Magic the Gathering isn't dependent on oversees manufacturing (much). It can stay dynamic and flexible in an uncertain time for businesses.
Digital outlets are a fact of life. The first people to tell you that will be local game store owners. They probably don't see this as a new issue and have been fighting the online market for some time. While it isn't a new issue for LGS's, it is a sensitive issue for people who love LGS's. Here's a few.
Manasource Reaction
Professor Reaction
MTGGoldfish Reaction
MostlyNotGaming Reaction
Vintage MTG Reaction
Dark Titan Enterprises Reaction
MagicalTabletopGirls
I'm sure there's a way that local game stores can be incorporated into the future of the game. Maybe they're on the list of things to do over at WOTC. But right now the mothership is focusing on other problems.
I would very much like to hear your thoughts on this.
Let's draw a line through a few events that have transpired over the last year.
December 4, 2017: Arena closed beta begins.
September 19, 2018: Announcement of the Arena Creator's Hub.
September 21, 2018: Announcement of direct sales of products through digital outlets.
September 27, 2018: Arena open beta begins.
October 4, 2018: Announcement of MagicFest and the consolidation of the Pro Tour and Grand Prix.
From these items, I can separate WOTC's actions into two lanes.
1. WOTC building up.
2. WOTC circling the wagons.
WOTC building up
Here's what I can piece together as far as WOTC's planning efforts go. First, there is a clear indication that a consolidation of effort is in progress. From their vantage (viewing as far back as 2 or 3 years), they could see several things. Reference article here.
1. A growing esports market (about 15% per year).
2. Riot Games and Activision Blizzard selling game franchises for $10 and $20 million respectively.
3. Magic the Gathering falling behind competitors on Twitch and YouTube.
What these indicators say to me, and what I think they were saying to WOTC, is that Magic the Gathering will not be among the best esports moving into the future unless something changed. As a business, the clear picture of its portion of the market would be quite sobering. In the ever-slipping attention of future generations, you're either growing into or out of their lives. It would appear that Magic the Gathering was the latter.
So how do you turn things around? The initial concern when considering the future of gaming is gamers of course. WOTC needed to appeal to new players in a way that they never had before.
Why won't my son play Magic with me? First, he's too busy playing League of Legends and second, his friends aren't playing it. When Arena was in closed beta, my son told me that he downloaded it because one of his friends sent him a code. He said it was fun and he was learning the game. WOTC targeted my son and got him in a way that I and Magic the Gathering Online never could. They gave Magic the appearance of being new. No easy task for a 25-year-old game.
Next, they needed buy-in from content creators to make inroads into YouTube and Twitch markets. They rewarded popular content creators repeatedly with special gaming days, freebies and help to get their content out there. Additionally, they tried new game formats within Arena to keep people interested. They made it possible for you to win your way into more games without spending any money. In short, they made Arena accessible and content creator friendly. Smart move in my opinion.
Now they needed to make their bread and butter paper game into something more palatable as well. Enter MagicFest. You might scoff at the idea, but I guarantee you...it is probably the BEST idea that they've had in a long time. Your average MTG player rarely has a clear picture of what major events are happening and where they can go to participate. Additionally, if travel is involved, unless that is all they have going on in their lives, they can probably go to a minimal number of events in their lives. At those events they will play Magic, probably lose, then go home.
But what if their event wasn't the only thing happening? What if it included the Pro Tour and possibly any number of other events that could capture the attention of players, content creators and businesses? What if people who don't play Magic started showing up to see what was happening? MagicFest (not advocating the name...withholding judgment...trying it on like a pair of tight shoes to see if my feet will adjust) can turn a normal tournament into a platform to expand beyond its own borders. It can pull in sponsor and advertisement dollars and grow into something that is beyond Magic, much like Comic-Con has grown outside of comic books. Is this a good time to bring up the Magic the Gathering comic book to be released next month?
That brings me to my next point and what I think should be WOTC's primary goal.
Discussions to include esports in the Olympics have been going on for a while, but only recently have we seen actual progress made toward that goal. last year the Olympic Council of Asia said that they would be included in the 2018 games and will be a medal-worthy event in the 2022 games. Three months ago the International Olympic Committee was looking at putting esports on the December agenda for discussions regarding their inclusion in the 2024 Paris games.
And 5 days ago, the Asian Games announced that Hearthstone, among other games was to be included in this year's events.
...
WOTC was right to see that they were not where they should be. Reaching for the 2024 Olympics is the right thing to do. And Magic is a perfect candidate for an international group that shies away from violent games and games that may show images inappropriate for the world stage. The Olympics would be a game changer, not just for WOTC, but for every player and content creator. It washes away all of the problems with public messaging. Children all around the world will see their favorite player from their country play a game with the best in the world and think, "I can do that". Then that kid will download Arena and start playing. It is the great equalizer. Those who medal in events now have something that is really a representation of who is the best in the world. Those who compete will be targeted by sponsors. Those who watch will be targeted by advertisers. Content creators will create content.
The accessibility of Magic will open doors to new markets. You don't need a computer to train. You can't say that for any other game currently on the list to be included in the games.
If this isn't WOTC's plan...it should be. Those who medal will be the heroes of MagicFest 2025.
April 17, 2017: Olympic Council of Asia announces that ESports will be a medal event in 2022. It will also be included in the 2018 games.
July 21, 2018: The International Olympic Committee (IOC) and the Global Association of International Sports Federations (GAISF) host an ESports Forum. ESports is put on the agenda for the December 2018 summit.
October 24, 2018: Asian Games 2018 confirms the inclusion of Hearthstone, League of Legends, StarCraft II, Pro Evolution Soccer, Clash Royale, and Arena of Valor.
WOTC circling the wagons
So, why is WOTC going direct with sales and bypassing our beloved local game stores?
September 18, 2017: Toys R Us declares bankruptcy.
The significance of Toys R Us going bankrupt is enhanced by the current trade war with China. Hasbro, of which WOTC is a subsidiary, makes over half (roughly 2/3) of their toys in China. While toys are not currently targeted for tariffs, this could quickly change as the economic relationship between the two nations descends into compounded retaliatory acts. When Toys R Us declared bankruptcy, this forced Hasbro to make up the distance between toys that could no longer be sold through Toys R Us and their bottom line. While this was a blow, it wasn't seen as a devastating hit. It was merely a hit to consumer confidence. With publicly traded companies, confidence in your business means everything though.
Toys R Us declares bankruptcy and 2 days later WOTC announces direct sales through digital outlets. There's no mystery there. If you want to make up for lost capital, you have to sell big. WOTC is one of the most reliable revenue streams available to Hasbro. Now with direct sales, it will be even more so. Magic the Gathering isn't dependent on oversees manufacturing (much). It can stay dynamic and flexible in an uncertain time for businesses.
Digital outlets are a fact of life. The first people to tell you that will be local game store owners. They probably don't see this as a new issue and have been fighting the online market for some time. While it isn't a new issue for LGS's, it is a sensitive issue for people who love LGS's. Here's a few.
Manasource Reaction
Professor Reaction
MTGGoldfish Reaction
MostlyNotGaming Reaction
Vintage MTG Reaction
Dark Titan Enterprises Reaction
MagicalTabletopGirls
I'm sure there's a way that local game stores can be incorporated into the future of the game. Maybe they're on the list of things to do over at WOTC. But right now the mothership is focusing on other problems.
I would very much like to hear your thoughts on this.
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