Star Wars

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  • Investors Finally Burst the Toy Bubble
  • Why Companies Sold Their Soul to Trendy Intellectual Properties
  • The Landfill of Misfit Toys

Following some turbulent periods, it seems like Disney‘s financial standing is starting to level out, unfortunately, this recovery comes too late for certain business partners. The decline in successful films at the cinema has triggered unexpected consequences. Unless you’re a parent or work at a retail store, you may not have noticed the piles of unpurchased toys gathering dust on shelves. After years of reported financial losses and dwindling interest in their toy line (which includes Transformers and merchandise from Disney properties like Marvel and Star Wars), Hasbro – a dominant player in the toy industry – is now facing a class-action lawsuit by investors for alleged violations of federal laws.

The allegation made by Business Wire claims that Hasbro concealed an excessive inventory accumulation during 2022 and ’23 which outstripped customer demand and was difficult for them to manage. Interestingly, the COO of Hasbro has left their headquarters since 2022, causing a stock drop that led to the termination of around 15% of its workforce. Additionally, the initial rollout of new Star Wars and Marvel projects in the 2020s has posed challenges for Disney as Disney+ battles with Netflix. Despite the temporary surge from “Reylo” fanfiction featuring Adam Driver and Daisy Ridley, the decline of Hasbro’s action-figure empire could not be halted. We will discuss the reasons behind this situation, its implications, and where all those unsold plastic Snokes might end up.

Investors Finally Burst the Toy Bubble

It’s now apparent that Rey’s initial box office success misleadingly suggested a profitable new era for the Star Wars films, forming the basis of this fraud lawsuit. This revelation comes six months after Hasbro’s CEO predicted substantial profits from the Transformers movie, as reported by Deadline. Despite the strong sales pitch, it was already too late for that product. The reasons could be poor movies, subpar products, brand fatigue, or, as Natalie Portman put it, a lack of charismatic stars capable of selling a blockbuster and boosting toy sales. In essence, the golden age of superhero and sci-fi franchises is over. As these franchises decline, they’ve dragged a cherished symbol of childhood memories down with them. Even the discount section couldn’t rescue Hasbro.

Why Companies Sold Their Soul to Trendy Intellectual Properties

In the past, toy companies didn’t just sit back on their successes. Take a look at Hasbro’s GI Joe and Mattel’s Barbie and He-Man lines, which initially were ideas born within the company itself. Similarly, Lego has managed to make its mark in various areas, with its distinctive design influencing numerous video games and films, leading to numerous collaborations with other brands. This is quite rare. Interestingly, Kenner took a risk by collaborating with George Lucas in 1977, but the payoff was significant.

The Star Wars design often prioritizes elements that can be successfully marketed as toys and collectibles, which has been a significant factor since its inception, according to Rob Bredow, Lucasfilm’s Senior Vice President of Creative Innovation. He confessed this to Fast Company.

…”One benchmark for our program was whether it would catch my interest enough to purchase the toy. We aimed to create something that has a broad, relatable appeal, similar to iconic items such as an X-Wing or Millennium Falcon.

It appears that the popularity and dominance of Star Wars and Marvel franchises has decreased significantly following the COVID-19 pandemic. To clarify, just as fresh produce doesn’t last forever, older merchandise also loses its value over time. Surplus items are often sold at a significant discount in outlet stores such as Marshalls and Ollie’s. In recent times, an abundance of unsold Disney merchandise in these stores has become a common topic among online communities. Sales of toys serve as an early warning sign for the overall well-being of a film franchise, reminding us of the merchandising struggles that we discussed extensively two years ago. Unfortunately, it seems like our prediction from back then is coming true, with legal disputes on the horizon.

The Landfill of Misfit Toys

The lifespan of any product includes the stage of becoming obsolete, and stores, outlets, and charities can only pass around plastic items made by injection molding for so long. Before anything is sold, it needs to be checked. The quantity of each brand’s, character’s, and type of toy (stuffed, die-cast, or the ones requiring batteries) that should be produced must be estimated based on expected demand. Every toy competes directly for shelf space in toy stores.

This legal case suggests that Hasbro exaggerated the demand for their products, persistently fueling excitement despite a decline in fan enthusiasm. As a result, retailers find themselves burdened with an excess of unsold merchandise – often referred to as “dead inventory.” The financial strain this causes raises questions about whether the overestimation of sales was simply optimism or an unfounded belief in the invincibility of Marvel and Disney. We’ll need to await the verdict to find out if the allegations are proven true.

When toys are no longer wanted, they often end up in one of two places: charities or landfills. Regrettably, it’s common for unwanted consumer items to be either shredded or discarded in landfills. For instance, the ET video game and unsellable merchandise from Amazon were disposed of in this manner, as revealed by an ITV News exposé. Financial mistakes or environmental disasters might await these cast-off toys, with up to 50 tons of trash serving as their final resting place – a tax write-off. Even the character Palpatine won’t be resurrected from such destruction.

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2025-02-08 19:32