LogFAQs > #951151794

Dynalo posted...

Yeah, he already posted the link to show it, but the profit margins on Magic product is insane. The rest of Hasbro brings in like 4x the revenue or something like that, but WotC brings in more profit than the rest combined.

Yup, most of the money goes to what exactly? The cards themselves are five cents to make, or whatever, it's just ink on some higher quality cardboard. Art is expensive, sure, but after you have a repertoire with the artists, and people want to work for you, you can shrug off a few hundred thousand in buying art (I'm not actually sure what their rates are, but I'm imagining it's around 10k, and you're asking for ~300-400 pieces a year). You have a bunch of people who work for the company, it's 600+ according to their website. Assuming a rate between 50k and 70k per person per year, that's between 30mil and 40mil for the people. All of the graphic design and everything is handled in-house as well, they rarely pull outside people, and now they have a division for competitive play (which sucks, but that's another thing).

It's basically a flat price to produce a new set, and then every box that they sell is just insane profits. So as long as they get a few good sets in a year, they pay for the people, and everything after that is just money straight into the bank.