Board Games Sales Slow Ahead of Holidays
The booming demand for board games, ignited during the pandemic, is showing the first signs of slowing down ahead of the holiday season.
In some respects, a slowdown in the sales of games and puzzles was to be expected when consumers shifted to other pursuits in a post-pandemic world. Game and puzzle sales rose 23% in 2021 (compared to 2019) and contributed to a 13% overall increase in toy sales last year to the tune of $28.6 billion, according to The NPD Group.
But a return to pre-pandemic numbers came into view last week when Hasbro reported that third quarter revenue from its Magic the Gathering unit, which also includes Dungeon & Dragons and Avalon Hill, decreased 13%. The toyco also reported that sales in digital and licensed gaming fell 37%.
Sales of the Magic the Gathering card game were up 5% through the first nine months of the year, but the overall general gaming category decreased “close to double-digits,” said Hasbro CEO Chris Cocks. As Magic approaches its 30th anniversary this fall, it has become Hasbro’s first game with $1 billion in annual sales.
Amazon, meanwhile, launched 13-36% discounts across a broad range of games last week, including Ravensburger’s licensed Princess Bride game (33% discount), Space Cowboys’ Marvel: Splendor game (20%), and PlayMonster’s Magical World of Disney Trivia Game (22%).
“Consumers played through the existing games, and bought more during the pandemic. The closet is full and people may very well still be engaged with board games even though sales are down,” said Gerrick Johnson, a senior analyst and managing director at BMO Capital Markets.
When consumers do look to start spending on games again, Johnson said, it likely won’t be on classic games they probably already own. “They are now looking for new, different games,” he said. “As a result, adult party games may be outperforming.”
Indeed, game and puzzle suppliers appear to be reaching beyond the traditional titles—or at least putting a new spin on them—in an effort to reach new consumers.
For example, Hasbro recently released Wordle: The Party Game, a board game version of the hit online game it licensed from The New York Times after the media company purchased it earlier this year. Ravensburger released Marvel: Villianous Mischief and Malice and Ares Games will bow War of the Ring: The Card Game, inspired by The Lord of the Rings trilogy, in November.
“While the pandemic saw a resurfacing of classic titles, consumers are now shifting to new game innovation,” said Spin Master CEO Max Rangel. This shift led to “softness” in Spin Master’s Cardinal Games division in the second quarter. The company will introduce new versions of its Rubik’s Cube this fall.
Looking forward into next year and beyond, however, market research firm SkyQuest is forecasting the global board games market will post a 13% annual sales increase through 2028 to hit $30.9 billion, up from $13 billion in 2021.