Hasbro's Billion-Dollar Gamble on In-House Game Development

The past year has been a significant one for Hasbro's video game division, with major successes in Monopoly Go and Baldur's Gate 3. However, these titles were developed through licensing agreements with external partners, Scopely and Larian Studios, respectively. Despite the success of these collaborations, Hasbro is now investing heavily in its own internal game development. Dan Ayoub, who leads digital product development at Hasbro's Wizards of the Coast brand, emphasizes this point, stating, 'Hasbro is indeed creating video games, with over $1 billion currently being invested in game development.' The company has established four AAA studios: Atomic Arcade in North Carolina, working on a Snake Eyes GI Joe game; Invoke Studios in Montreal, developing a Dungeons & Dragons game; Skeleton Key in Austin, Texas, working on a 'spooky' project; and Archetype, also in Austin, where BioWare veteran James Ohlen is leading the development of a new franchise called Exodus. Ayoub views this push for internal development as a natural progression for the company, given its 100-year history of focusing on play and entertainment. Hasbro aims to build a diverse portfolio of games, including both established IPs and original content. The company's interest in gaming is not new, having previously attempted to establish a presence in the industry through its Hasbro Interactive division in the 1990s. However, after facing challenges, the company sold its interactive business to Infogrames. When asked why this effort will be different, Ayoub points to the significant investment Hasbro has made, with over $1 billion dedicated to video game development. He also highlights the company's focus on building studios around strong leaders and thinking about long-term success. Despite recent layoffs, Ayoub believes that Hasbro's gaming ambitions align with the company's overall strategy of focusing on 'fewer, bigger, better brands.' He notes that the company's internal game development efforts are designed to create high-quality, authentic experiences that will resonate with players. To achieve this, Hasbro has established studios with experienced leadership and teams, and is committed to giving them the time and resources needed to produce exceptional games. Ayoub stresses that the company has a 'very deliberate plan' for its internal studios and is willing to wait for the right moment to release its titles, ensuring that they meet the highest standards of quality and authenticity.