It’s no secret that the last few years have been a tumultuous time for MTG. The game has seen huge, sweeping changes, from the ramping up of Universes Beyond products to a massive increase in Standard sets in general. There’s been plenty of pushback against these changes from the community, but with sales climbing higher each year, they seem here to stay.
Unfortunately for Hasbro, this period of consequence-free prosperity may be at an end. This week, some disgruntled shareholders have filed a lawsuit against Hasbro for its alleged mismanagement of Magic as a game. Whether this suit has real teeth or not, it’s a worrying wake-up call for both Hasbro and the community.
The MTG Lawsuit Against Hasbro
The lawsuit in question was filed this past Wednesday in the District of Rhode Island, by plaintiffs Joseph Clocono and Ultan McGlone. Both plaintiffs have been shareholders in Hasbro for several years now, Clocono since 2020 and McGlone since 2021.
The substance of their claim is that Hasbro has been “knowingly overprinting” MTG product, with the aim of shoring up its losses in other areas. This, in turn, has caused four major problems in the plaintiffs’ eyes. As the pair put it, Hasbro has “flooded the market, devalued the product, angered players/retailers, and damaged the product’s long-term viability.”
Much of the plaintiffs’ case here relies on a report made by the Bank of America back in 2022. In this report, analyst Jason Haas accused the company of “killing its golden goose” by overproducing MTG cards for short-term profit. The claims this week are essentially an extension of this report, attacking Hasbro on the same axis that others have been for around four years now.
Weighing The Evidence
Realistically, while the lawsuit’s talking points hit upon commonly complained-about issues, their reasoning is somewhat suspect. While it’s true that Wizards of the Coast is printing tons of product, they’re not exactly struggling to sell it. If anything, demand has only been increasing, allowing sets like MTG Final Fantasy to demolish past sales records.
On top of this, even with the ever-present tide of power creep, there’s no clear trend of MTG product being devalued. New multi-format staples are still selling for eye-watering prices, and Wizards has even been cutting down on reprint avenues recently. While this is bad news for budget-conscious players, it should be fantastic for investors.
Even the suggestion that MTG’s long-term viability is in jeopardy doesn’t particularly hold water either. Both Magic Multiverse and Universes Beyond sets have still been selling incredibly well, and there’s no indication that will change overnight. While this could change in the next few years as Hasbro’s Universes Beyond push continues, there’s no guarantee it’ll happen.
If anything, the only real concern expressed in the lawsuit is that players and retailers are unhappy. The sheer volume of product being released, not to mention the existence of Universes Beyond, has long been a controversial topic, after all. That being said, these dissenting voices have been getting quieter over the years, and it’s unclear if it’s just a vocal minority.
The Community Chimes In
Naturally, the MTG community has some thoughts of its own on this new Hasbro lawsuit. The Reddit thread discussing the topic has accumulated a huge number of comments so far, with the overall feeling on the lawsuit being one of skepticism.
Players like JayArlington have pointed out that suits like this are fairly common, but rarely amount to much in the end. Many in the comments agree, likening the suit to a “shakedown,” and questioning the legitimacy of the plaintiffs’ claims. While there’s agreement that Wizards is pumping out too much product, there’s also the sense that the strategy is a valid one, especially given how well MTG is doing at the moment.
On the other hand, some players genuinely believe the lawsuit has legs. As Chainsawinsect points out, while the company’s strategy may be legitimate, there’s the separate issue of it being used as a crutch for other Hasbro properties. Essentially, the claim here is that Hasbro is relying too heavily on Magic while obfuscating the poor performance of its other properties. While Hasbro has been fairly open about its poor performance in non-Magic areas in recent years, there could be a legitimate legal grievance here.
An Ill Omen
For now, it’s impossible to say how this new lawsuit will pan out. Community opinion is divided, and we’re yet to see any kind of official response from Hasbro itself. Realistically speaking, however, it seems likely that the whole thing won’t amount to much. Even if the suit persists and the plaintiffs win, the consequences for Hasbro probably won’t be too severe. That’s a big if, too, considering the sheer size of the company. While boring, it seems like an out-of-court settlement is the most likely outcome here.
That said, the fact that this lawsuit exists at all is a bit of an ill omen for Magic. While the game has gone from strength to strength financially over the last few years, it’s also pushed out a lot of its core player base and created a lot of anger and resentment. Players aren’t happy with the state of competitive formats, the rise of Universes Beyond, or the absurd release rate for new products. This lawsuit, while clearly coming from a shareholder perspective, still captures a lot of that anger.
Even if this suit goes nowhere, it could serve as a rallying point for the community, which, in turn, could press Wizards for real change. While it would be unfortunate if that’s what it takes to fix the problems with current Magic, we certainly wouldn’t look a gift horse in the mouth in that case.
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