Hasbro has recorded a $56 million write-down after cancelling several video game projects as it refocuses its digital strategy around major franchises including Dungeons and Dragons and Magic: The Gathering.
Hasbro has revealed it has taken a $56 million (£41m) non-cash write-down after cancelling several video game projects that had been planned for release from 2028 onwards.
The toy and gaming giant confirmed the charge during its earnings report for the second quarter ending June 28, 2026, saying it is narrowing its focus to projects with the strongest long-term commercial potential.
Chief executive Chris Cocks did not identify the cancelled games, although a Dungeons and Dragons title being developed by Giant Skull was previously scrapped earlier this year.
Speaking to investors, Cocks said Hasbro is becoming more selective with its digital investments.
He said: “We are focusing our digital investment behind the franchises, platforms, and partners where we see the clearest upside and where Hasbro has the strongest right to win.
“Our digital investment will centre on trading card games and role-playing games, with brands that can become a significant digital franchise and expand across media over time.”
Cocks pointed to Magic: The Gathering Arena and Larian Studios’ award-winning Baldur’s Gate 3 as examples of the type of success Hasbro hopes to replicate.
He confirmed that Exodus and Warlock—the latter set in the Dungeons and Dragons universe—remain on track for release in 2027 after meeting the company’s criteria for “big audience potential, strong genre fit, franchise potential and meaningful opportunities beyond the initial game”.
Hasbro also plans to reduce its digital development costs significantly over the next two years.
Cocks explained: “2026 should be our peak year for digital investment as Exodus and Warlock enter their finishing phases.
“As we move into the next generation of games, our model becomes more efficient.”
The company is shifting more development work to lower-cost regions while expanding co-development and co-publishing partnerships with external studios.
As a result, Hasbro expects its overall digital spending to fall by at least 25 per cent annually by 2028.
Despite the cancellations, Cocks insisted the publisher remains committed to gaming, revealing that more than 200 projects are currently active or in development across mobile, PC, console and casino platforms.
Many of those are being created alongside partners including Scopely, Ubisoft, Gameloft, Aristocrat, TripleDot, Marmalade and Gameberry Labs.
Cocks added: “The digital strategy is straightforward. We are taking lower conviction projects out of the portfolio, reducing our annual spend base and concentrating investment behind the places where Hasbro has the best chance to build durable digital franchises… We remain highly confident in our digital games portfolio.”
Hasbro suffers $56 million hit after scrapping several video games
