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Wizards of the Coast

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Template:Short description Template:Distinguish Template:Good article Template:Use American English Template:Use mdy dates Template:Infobox company Wizards of the Coast LLC (WotC Template:IPAc-en or Wizards) is an American game publisher, most of which are based on fantasy and science-fiction themes, and formerly an operator of retail game stores. In 1999, toy manufacturer Hasbro acquired the company and currently operates it as a subsidiary.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref name=":16" /> During a February 2021 reorganization of Hasbro, WotC became the lead part of a new division called "Wizards & Digital".<ref name=":9">Template:Cite news</ref><ref name=":15">Template:Cite web</ref>

WotC was originally a role-playing game (RPG) publisher that in the mid-1990s originated and popularized collectible card games with Magic: The Gathering. It later acquired TSR, publisher of the RPG Dungeons & Dragons, and published the licensed Pokémon Trading Card Game from 1999 to 2003. WotC's corporate headquarters is located in Renton, Washington, which is part of the Seattle metropolitan area.<ref>Template:Cite web</ref><ref name=":0" />

The company publishes RPGs, board games, and collectible card games. It has received numerous awards, including several Origins Awards. The company has also produced sets of sports cards and series for association football, baseball, basketball and American football.

History

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File:Wizards of the Coast, original logo.jpg
Original logo designed by Rich Kaalaas<ref name=":10" />

Wizards of the Coast (WotC) was founded by Peter Adkison in 1990 outside of Seattle, Washington,<ref name=":2">Template:Cite book</ref> and its current headquarters is located in nearby Renton.<ref>Template:Cite web</ref> The company was named after a guild of wizards in a role-playing game (RPG) Adkison was playing.<ref name=":10">Template:Cite webTemplate:Cbignore</ref> The company published RPGs such as the third edition of Talislanta and its own product The Primal Order (1992).<ref name=":2" /> The Primal Order was a supplement designed for use with any game system,<ref name="FRGB">Template:Cite book</ref> but Palladium Books sued WotC for using references to Palladium's game and system.<ref name="Minotaur1">Template:Cite web</ref> The suit was settled in 1993.<ref name="briefhistory">Template:Cite web</ref>

In 1991, Richard Garfield approached WotC with the idea for a new board game called RoboRally but Adkison rejected it because the game would have been too expensive to produce.<ref name="GIG">Template:Cite book</ref> Adkison asked Garfield if he could invent a game that was portable and quick-playing, and Garfield agreed.<ref name="GIG"/><ref name="MILLER">Template:Citation</ref>

Adkison set up a new corporation called Garfield Games to develop Garfield's collectible card game concept into Magic: The Gathering. The new company sheltered the game from the legal battle with Palladium. Garfield Games then licensed the production and sale rights to WotC until the court case was settled, at which point Garfield Games was shut down. WotC debuted Magic: The Gathering in July 1993 at Origins Game Fair in Dallas.<ref name="Minotaur1"/> The following month, the game was extremely popular at Gen Con, selling out of its supply of 2.5 million cards, which had been planned to last until the end of the year.<ref name="GIG"/> The game's success generated revenue that grew the company in two years from a few employees working in Adkison's basement headquarters to 250 employees in its own offices.<ref name="briefhistory"/> In 1994, Magic: The Gathering won the Mensa Top Five Mind Games award,<ref>Template:Cite web</ref> and the Origins Awards for Best Fantasy or Science Fiction Board Game of 1993 and Best Graphic Presentation of a Board Game of 1993.<ref>Template:Cite web</ref>

In 1994, WotC began an association with The Beanstalk Group, a brand-licensing agency and consultancy, to license the brand Magic: The Gathering.<ref name="Minotaur2">Template:Cite web</ref> After the success of Magic: The Gathering, in 1994, WotC published RoboRally, which won the 1994 Origins Awards for Best Fantasy or Science Fiction Board Game and Best Graphic Presentation of a Board Game.<ref name="awards">Template:Cite web</ref> Also in 1994, WotC also expanded its RPG line by buying SLA Industries from Nightfall Games and Ars Magica from White Wolf.<ref name="briefhistory"/> In 1995, WotC published The Great Dalmuti, another card game by Richard Garfield, which won the 1995 Mensa Best New Mind Game award.<ref>Template:Cite web</ref> In August 1995, WotC released Everway before closing its RPG product line four months later. In 1995, Wizards' annual sales passed US$65 million.<ref>Template:Cite book</ref>

Acquisition of TSR and Pokémon Trading Card Game

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File:Peter Adkison-2007.jpg
Peter Adkison, founder of Wizards of the Coast, at Gen Con Indy 2007

Wizards of the Coast announced the purchase of TSR, the makers of Dungeons & Dragons, on April 10, 1997.<ref name="briefhistory"/><ref name=":13">Template:Cite magazine</ref><ref name=":14">Template:Cite web</ref> WotC acquired TSR and Five Rings Publishing Group for $25 million.<ref name="Varney">Template:Cite news</ref> As part of the sale, TSR employees were offered an opportunity to relocate from Wisconsin to the west coast.<ref>Template:Cite web</ref><ref name=":14" /> WotC continued using the brand name TSR until 2000 and allowed the trademark to expire in 2004.<ref>Template:Cite web</ref> Between 1997 and 1999, the company spun off several TSR campaign settings, including Planescape, Dark Sun, and Spelljammer, to focus the business on the more profitable Greyhawk and Forgotten Realms lines.<ref>Template:Cite web</ref>

In mid 1997, WotC revisited the concept of a third edition of Dungeons & Dragons, having first discussed it soon after the purchase of TSR.<ref name="30 Years">Template:Cite book</ref><ref name=":3">Template:Cite book</ref> WotC released the third edition of Dungeons & Dragons in 2000 with the d20 System.<ref name=":3" /><ref>Template:Cite web</ref> The company released these properties under the Open Game License, which allows other companies to make use of those systems.<ref name="briefhistory" />

The new edition of Dungeons & Dragons won multiple Origins Awards in 2000, such as Best Roleplaying Game for Dungeons & Dragons and Best Graphic Presentation of a Roleplaying Game, Adventure, or Supplement for the Monster Manual.<ref>Template:Cite web</ref> In 2002, WotC sponsored a design contest for which designers could submit proposals to produce a new campaign world to the company. WotC selected "Eberron", which game designer Keith Baker submitted, and its first campaign book was released in June 2004.<ref name=":2" /> The Eberron Campaign Setting won the 2004 Origins Award for Best Role-Playing Supplement.<ref>Template:Cite web</ref> In 2003, WotC released version 3.5 of Dungeons & Dragons and the d20 system.<ref name="briefhistory" /> The 30th anniversary of the D&D game was celebrated at Gen Con Indy 2004.<ref>Template:Cite web</ref>

Pokémon TCG

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On August 2, 1997, Wizards of the Coast was granted Template:US patent on collectible card games.<ref name="briefhistory"/> In January 1999, WotC began publishing Pokémon Trading Card Game after acquiring the rights in August 1998.<ref>Template:Cite web</ref><ref name="Minotaur2"/> The game sold nearly 400,000 copies in less than six weeks and sold 10-times more units than initial projections.<ref>Template:Cite web</ref> Some sports card series were discontinued in 1999 because so many printers were producing Pokémon cards.<ref name="GIG"/> The game won the National Parenting Center's 1999 Seal of Approval.<ref name="awards"/>

Within a year, WotC had sold millions of copies of the Pokémon game and the company released a new set that included an instructional CD-ROM.<ref>Template:Cite web</ref> WotC continued to publish the game until 2003. One of Nintendo's affiliates The Pokémon Company (formerly Pokémon USA) began producing a new edition for the game one day after the last of its agreements with Wizards expired on September 30, 2003. The following day, WotC filed suit against Nintendo, accusing it of "abandoning a contract with Wizards, the longtime producer and distributor of Pokémon trading-card games, and using Wizards-patented methods and technology to manufacture the games itself".<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The companies resolved the legal action in December 2003 without going to court.<ref>Template:Cite web</ref>

Retail stores

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After the company's success in 1999 with Pokémon,<ref name="GIG" /> Wizards of the Coast acquired and expanded The Game Keeper, a US chain of retail gaming stores, eventually changing its name to Wizards of the Coast.<ref name="Standard & Poor's">Template:Cite book</ref><ref>Template:Cite news</ref> The company's gaming center in Seattle was closed in March 2001.<ref name="Minotaur1" /> In December 2003, WotC announced it would close all of its stores to allow it concentrate on game design.<ref name="Standard & Poor's" /><ref>Template:Cite web</ref> The stores were closed in early 2004.<ref name="briefhistory" />

Acquisition by Hasbro

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In September 1999, toy manufacturer Hasbro bought Wizards of the Coast for about US$325 million.<ref name=":16">Template:Cite web</ref><ref name=":4">Template:Cite web</ref> Avalon Hill, which Hasbro had purchased in mid-1998, was made a division of WotC in late 1999.<ref>Template:Cite book</ref><ref name=":1">Template:Cite web</ref> In November 1999, WotC announced Gen Con would leave Milwaukee after the 2002 convention.<ref name="Miller2002">Template:Cite news</ref> Also in November, Vince Caluori became President of WotC.<ref>Template:Cite web</ref>

On January 1, 2001, Peter Adkison resigned from WotC.<ref name="briefhistory"/> In August 2001, the company, which had been a semi-independent division of Hasbro, was consolidated into Hasbro's game division. According to trade magazine ICv2: "this is seen as a loss of autonomy for WotC by most. The Hasbro release specified that despite the consolidation at the management level, WotC will continue to operate out of its Seattle offices."<ref>Template:Cite web</ref> Between 2001 and 2002, Hasbro sold Origins Game Fair to Game Manufacturers Association (GAMA),<ref name="briefhistory" /> and in May 2002, it sold Gen Con to Peter Adkison.<ref name="gamespy1">Template:Cite web</ref>

2000–2010

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In 2000, Wizards of the Coast introduced the Open Game License (OGL), which allowed the production of a wide range of unofficial commercial derivative works based on the mechanics of Dungeons and Dragons;<ref>Template:Cite web</ref> it is credited with increasing the market share of d20 products<ref name=":103">Template:Cite journal</ref> and leading to a "boom in the RPG industry in the early 2000s".<ref name=":93">Template:Cite journal</ref> Chuck Huebner became president and CEO of Wizards of the Coast in June 2002.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In 2003, the company employed 850 people.<ref>Template:Cite web</ref>

Throughout the early 2000s, WotC won multiple Origins Awards, including: 2001 Best Role-Playing Game Supplement (Forgotten Realms Campaign Setting) and the Best Game Related Novel (Clan War 7th Scroll: The Lion); 2002 Best Role-Playing Adventure (City of the Spider Queen); 2005 Collectible Card Game or Expansion of the Year (Ravnica: City of Guilds expansion for Magic: The Gathering) and Gamer's Choice Best Historical Game of the Year (Axis and Allies Collectible Miniatures Game), and the 2006 Miniature or Miniatures Line of the Year (Colossal Red Dragon).<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> It also won the 2002 Gold Ennie Award for "Best Publisher"<ref>Template:Cite web</ref> and the 2006 Silver Ennie Award for "Fan's Choice for Best Publisher".<ref>Template:Cite web</ref>

In 2002, Wizards of the Coast's periodicals department was spun off; WotC outsourced its magazines by licensing Dungeon, Dragon, Polyhedron, and Amazing Stories to Paizo Publishing.<ref name="briefhistory" /><ref>Template:Cite press release</ref> The license expired in September 2007 and WotC began publishing the magazines online.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In 2003, WotC released Dungeons & Dragons miniatures; collectible, painted, plastic miniature games. In 2004, the company added a licensed Star Wars line. In April 2004, Loren Greenwood succeeded Huebner as the subsidiary's president.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Also in 2004, Avalon Hill became a subsidiary of WotC.<ref name=":1" />

In early 2006, WotC filed a lawsuit against Daron Rutter, who was the administrator of the website MTG Salvation.<ref name="WOTC Legal">Template:Cite press release</ref> The lawsuit said Rutter publicly posted confidential prototypes of upcoming Magic: The Gathering card sets to the MTG Salvation forums,<ref name="WOTC Legal" /> ten months before the cards were to be released.<ref name="L&O">Template:Cite web</ref><ref>Template:Cite web</ref> The lawsuit was settled out of court, according to Mark Rosewater.<ref name="L&O" />

Greg Leeds succeeded Greenwood as president and CEO of WotC in March 2008.<ref>Template:Cite press release</ref><ref>Template:Cite web</ref> On June 6, 2008, Wizards released the fourth edition of Dungeons & Dragons, and began introducing fourth-edition online content in Dragon and Dungeon magazines.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>Template:Overcite

Throughout the 2000s, WotC released new editions of Magic: The Gathering. In 2009, WotC announced a new edition called Magic 2010, which coincided with the first major rules change to Magic since the Revised Edition was released in 1994.<ref>Template:Cite web</ref><ref name=":6">Template:Cite magazine</ref>

By 2008, the company employed over 300 people<ref name="About">Template:Cite web</ref> and went through a restructuring.<ref>Template:Cite web</ref> On April 6, 2009, WotC suspended all sales of its products for the Dungeons & Dragons games in PDF format from places such as OneBookShelf, and its online storefronts RPGNow and DriveThruRPG.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The company launched a lawsuit against eight people to prevent future copyright infringement of its books, including fourth-edition Dungeons & Dragons products that were sold through these places, and all older editions PDFs of the game.<ref>Template:Cite press release</ref><ref>Template:Cite web</ref>

2010–2020

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File:Wizards of the Coast logo.svg
Wizards of the Coast logo from 2010 to 2021

In 2012, Ethan Gilsdorf writing for The New York Times reported sales of Dungeons & Dragons products had slumped.<ref name=":5" /> Despite the company not releasing sales figures, analysts and gaming experts noted sales had been declining.<ref name=":5">Template:Cite news</ref> That year, WotC announced a public playtest to develop a new edition of Dungeons & Dragons called D&D Next.<ref name=":5" /><ref>Template:Cite magazine</ref><ref>Template:Cite magazine</ref><ref>Template:Cite magazine</ref> The 5th edition of Dungeons & Dragons was released on July 15, 2014, with the Dungeons & Dragons Starter Set.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> In 2014, 126,870 units of the Dungeons & Dragons Starter Set were sold, and in 2018, 306,670 units of the product were sold.<ref name=":7">Template:Cite news</ref>

Throughout the 2010s, WotC and its products continued to earn awards. This included multiple 2015 Origins Awards, such as: Role-Playing Game Fan Favorite (Dungeon & Dragons: Players Handbook), Role-Playing Supplement Fan Favorite (Dungeon & Dragons: Monster Manual), and Collectible Card Game (Magic the Gathering: Khans of Tarkir).<ref>Template:Cite web</ref> WotC won the 2015 Gold Ennie Award for "Fan's Choice for Best Publisher"<ref>Template:Cite web</ref> and won the 2017 Gold Ennie Awards for "Fan's Choice for Best Publisher".<ref>Template:Cite web</ref>

In 2014, 20th Century Fox acquired the screen rights to Magic: The Gathering to produce a movie series with Simon Kinberg attached to the project.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Also in 2014, WotC filed a lawsuit against Cryptozoic Entertainment and Hex Entertainment alleging their online card game Hex: Shards of Fate was a clone of Magic: The Gathering.<ref>Template:Cite web</ref> The three companies agreed to a settlement the following year.<ref>Template:Cite web</ref> In 2015, it was reported an estimated 20 million people played Magic: The Gathering and that the game had tournaments, a professional league, and a weekly organized game program called Friday Night Magic.<ref>Template:Cite news</ref>

Since the release of the 5th edition, WotC has published more than twenty Dungeon & Dragons books, including new rulebooks, campaign guides and adventure modules.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> According to The Seattle Times, 2017 had "the most number of players in its history".<ref>Template:Cite web</ref> Writing for Bloomberg, Mary Pilon reported sales of the 5th edition of Dungeon & Dragons rose 41 percent in 2017 compared to the year before, and in 2018 rose another 52 percent. Pilon also said in 2017, nine million people watched others play D&D on the video-sharing platform Twitch.<ref name=":7" />

In 2016, WotC partnered with OneBookShelf to create an online community-content platform called Dungeon Masters Guild (DMsGuild) that allowed creators to make and sell content using WotC's properties. Users of DMsGuild could also purchase earlier editions of Dungeon & Dragons as PDFs and as print-on-demand books.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In 2016, Chris Cocks replaced Greg Leeds as president of WotC.<ref>Template:Cite press release</ref><ref name=":0">Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> Giaco Furino writing for Vice reported high tensions over deadlines at the company.<ref>Template:Cite web</ref> In 2019, WotC became a member of the Entertainment Software Association.<ref>Template:Cite web</ref><ref>Template:Cite web</ref>

In April 2019, WotC announced the appointment of gaming-industry veteran James Ohlen as the head of its new studio in Austin, Texas; in January 2020 the new studio was revealed to be Archetype Entertainment.<ref>Template:Cite magazine</ref><ref>Template:Cite web</ref> In June 2019, internet-streaming service Netflix announced WoTC would work with Anthony and Joe Russo to create an animated series based on the mythology of Magic: The Gathering. The Russo brothers were executive producers on the series, with writers Henry Gilroy and Jose Molina as showrunners, and Bardel Entertainment worked on animation.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In July 2019, Joe Deaux reported in Bloomberg: "Magic is part of the [Hasbro's] 'franchise brands', a segment that accounted for $2.45 billion in net revenue for the company last year".<ref name=":4" /> According to Chris Cocks, Magic accounted for a "meaningful portion" of that sum and KeyBanc estimated the game's contribution was more than $500 million of the franchise brands.<ref name=":4" />

In 2019, WotC released a Hearthstone competitor called Magic: The Gathering Arena, which is a free-to-play digital collectible card game with microtransaction purchases. It had been In open beta testing since September 2018.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Brett Andress, an analyst at KeyBanc Capital Markets, predicted Magic: The Gathering Arena would boost earnings by at least 20 percent.<ref name=":4" />

2020–present

[edit]

In February 2020, during a Hasbro earnings call, CEO Brian Goldner said Wizards of the Coast was delivering positive results and that Hasbro planned to double WotC's revenues between 2018 and 2023.<ref name=":11" /> He also reported revenues from Magic: The Gathering had increased by over 30 percent; Magic: The Gathering Arena had a strong first year and Dungeons & Dragons revenues grew for the seventh consecutive year.<ref name=":11">Template:Cite web</ref><ref name=":83">Template:Cite news</ref> Dungeons & Dragons virtual play increased by 86 percent during 2020, due to the COVID-19 pandemic.<ref name=":83"/>

On June 1, 2020, after the murder of George Floyd, WotC released a statement in support of its Black fans, employees, and community members.<ref name=":17">Template:Cite news</ref><ref name="Kotaku June 2020">Template:Cite web</ref> This provoked a backlash; multiple open letters that criticized the company for its treatment of people of color, and documenting issues Black and Brown community members had taken with the company's actions were published.<ref name=":17" /><ref>Template:Cite web</ref><ref>Template:Cite news</ref> The New York Times, Polygon, and Kotaku reported following this criticism, WotC banned seven Magic: The Gathering cards that were deemed racially offensive from tournament-sanctioned play.<ref>Template:Cite news</ref><ref name="Kotaku June 2020" /><ref name=":12">Template:Cite web</ref> The D&D team announced it would be changing portions of its fifth-edition product line that fans had criticized for being insensitive, such as racist portrayals of a fictional people known as the Vistani, and races characterized as monstrous and evil.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The company also announced plans to change character creation to broaden the range of character types and adding a sensitivity disclaimer to some legacy products that include cultures inspired by Asia, Mesoamerica, and the Middle East.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The Washington Post reported the tabletop community has widely approved of these changes,<ref>Template:Cite news</ref> although Wired criticized some of the change attempts as often feeling "like lip service".<ref>Template:Cite magazine</ref>

During its 2021 Investor Event, Hasbro announced the company would be reorganized into three divisions: Consumer Products, Entertainment, and Wizards & Digital.<ref name=":9" /><ref name=":15" /> The announcement was paired with a rebrand including a new logo and refreshed website for WotC.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> Also in 2021, WotC opened a new video-game studio, whose first project was a high-budget game based on the G.I. Joe franchise.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In 2022, Chris Cocks became CEO of Hasbro and Cynthia Williams replaced him as president of Wizards & Digital.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> In June 2022, Hasbro defeated a board challenge from activist investor Alta Fox Capital Management LLC.,<ref>Template:Cite news</ref><ref>Template:Cite web</ref> a hedge fund company that owned a 2.5 percent stake in Hasbro and had wanted to spin out WotC<ref>Template:Cite web</ref><ref>Template:Cite web</ref> into a separate company to create what it saw as "more value by making a second publicly traded company with a more profitable line of business".<ref>Template:Cite web</ref> In July 2022, WotC announced it was establishing another new video-game studio called Skeleton Key, which would focus on AAA games and would be headed by Christian Dailey, formerly of BioWare.<ref name=":18">Template:Cite web</ref><ref>Template:Cite web</ref>

In April 2022, Hasbro acquired the digital toolset and game companion D&D Beyond from Fandom,<ref name=":72">Template:Cite web</ref><ref name=":82">Template:Cite web</ref> and transferred control to WotC the following month.<ref name=":92">Template:Cite web</ref><ref name=":102">Template:Cite web</ref> At the Hasbro Investor Event in October 2022, it was announced Dan Rawson, former chief operating officer (COO) of Microsoft Dynamics 365 was appointed to the newly created position of Senior Vice President for the Dungeons & Dragons brand to act as head of the franchise.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> According to Dicebreaker, Rawson's role was "part of Wizards' plans to apply more resources to the digital side of D&D" following Hasbro's purchase of D&D Beyond.<ref>Template:Cite web</ref>

At a December 2022 investor-focused web seminar, Williams and Cocks called the Dungeons & Dragons brand "under monetized".<ref name=":25">Template:Cite web</ref><ref name=":26">Template:Cite web</ref> They noted the high engagement of fans with the brand but said the majority of spending is by Dungeon Masters, who comprise around 20 percent of the player base. Williams commented the goal of increased investment in digital aspects of that product line was to "unlock" recurrent spending typical of digital games.<ref name=":25" /><ref name=":26" />

In 2022, The Gamer and Kotaku reported on the increased product-release schedule for Magic: The Gathering;<ref name=":37" /><ref>Template:Cite web</ref> The Gamer said the increased number of preview seasons for the game was leading to exhaustion within the community and had "drained the well of enthusiasm dry".<ref>Template:Cite web</ref> Vice commented there was "a growing divide in the Magic: The Gathering community between the casual players and the collectors" because "some rich collectors have turned the cards into a kind of commodities market",<ref name=":31" /> and that "Wizards of the Coast has increasingly catered to this kind of consumer", leading to products that are too expensive for many casual players.<ref name=":31">Template:Cite web</ref> In November 2022, CNBC reported: "Bank of America downgraded the stock of Wizard of the Coast's owner, Hasbro";<ref name=":35">Template:Cite web</ref> analyst Jason Haas stated changes to the Magic: The Gathering brand "amount to Hasbro 'killing its golden gooseTemplate:'" and that the "primary concern" is the overproduction of "Magic cards which has propped up Hasbro's recent results but is destroying the long-term value of the brand".<ref>Template:Cite web</ref><ref name=":37">Template:Cite web</ref>

Between November and December 2022, there was speculation based on unconfirmed leaks saying WotC was planning to discontinue the OGL for Dungeons & Dragons.<ref name=":22">Template:Cite web</ref><ref>Template:Cite web</ref><ref name=":33">Template:Cite web</ref><ref name=":52">Template:Cite web</ref> Following a WotC response to the speculation,<ref name=":33"/> the company released limited details of an update to the OGL the following month.<ref name=":73">Template:Cite web</ref><ref name=":62">Template:Cite web</ref><ref name=":52" /> Linda Codega, writing for Io9, reported on the details from a leaked full copy of the OGL 1.1 on January 5, 2023.<ref name=":21">Template:Cite web</ref> Codega said: "every single licensed publisher will be affected by the new agreement ... The main takeaway from the leaked OGL 1.1 draft document is that WotC is keeping power close at hand."<ref name=":21" /> ICv2 commented the leaked OGL had several controversial parts.<ref name=":23">Template:Cite web</ref> Following this leak, numerous news-and-industry-focused outlets reported on negative reactions from fans and professional content creators.Template:Efn TheStreet said WotC's main competitors quickly moved away from the OGL in the time it took WotC to settle on a response.<ref name=":28">Template:Cite web</ref> Both Kobold Press and MCDM Productions announced upcoming new open tabletop RPG systems.<ref name=":24">Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> Paizo announced a new Open RPG Creative License (ORC), a system-agnostic license, and other publishers joined the development of this new license.Template:Efn TheStreet also said WotC had united its player base against it; both TheStreet<ref name=":28" /> and Io9 noted the movement to boycott D&D Beyond and mass subscription cancellations; Io9 stated the "immediate financial consequences" forced a response by WotC.<ref name=":29">Template:Cite web</ref> Io9 also reported WotC's internal messaging on the response to the leak was this was a fan overreaction.<ref name=":29" />

In the following weeks, WotC reversed changes to the OGL and solicited public feedbackTemplate:Efn before moving away from the OGL and releasing the System Reference Document 5.1 (SRD 5.1) under an irrevocable creative commons license (CC-BY-4.0).Template:Efn Edwin Evans-Thirlwell of The Washington Post wrote: "pushback from fans, who criticized WotC's response as far from an apology and a dismissal of their legitimate concerns, led WotC to backpedal further" and that the company "appears to have committed an irreversible act of self-sabotage in trying to replace [the OGL]—squandering the prestige accumulated over 20 years in a matter of weeks".<ref name=":322">Template:Cite news</ref> Both Io9 and ComicBook.com called the major concessions by WotC a "huge victory" for the Dungeons & Dragons community.<ref name=":36" /><ref name=":34" /> The Motley Fool said the "abrupt volte-face" was "an abject failure for Hasbro's business" if the assumed goal was to increase monetization of "Dungeons & Dragons properties, grow revenue for Hasbro, and earn more profits for Hasbro shareholders".<ref name=":27">Template:Cite web</ref>

Also in January 2023, WotC canceled at least five unnamed video-game projects;<ref name=":19">Template:Cite news</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> an internal project code-named Jabberwocky, and two games that were in the early development stages.<ref name=":19" /><ref name=":20">Template:Cite web</ref> Jason Schreier writing for Bloomberg News said fewer than 15 people at WotC would lose their jobs but "the reorganization will land hard for several independent studios such as Boston-based OtherSide Entertainment and Bellevue, Washington-based Hidden Path Entertainment, both of which were working on games for Wizards of the Coast".<ref name=":19" /><ref name=":20" /> In February 2023, Markets Insider reported Bank of America continued to rate Hasbro's stock as underperforming and said the company "faces a steep decline in its share price if it continues to 'destroy customer goodwillTemplate:'" by over-monetizing brands within its Wizards segment.<ref>Template:Cite web</ref> In April 2023, WotC sent private detectives from the Pinkerton agency to the house of a Magic: The Gathering YouTuber, who said the agents demanded he destroy cards from an unreleased set he had been accidentally sent, and to remove videos from his channel, otherwise he and his wife would face a $200,000 fine and imprisonment.<ref>Template:Cite web</ref><ref>Template:Cite web</ref><ref>Template:Cite web</ref> The game's players subsequently initiated a boycott in response.<ref>Template:Cite web</ref> In December 2023, TechCrunch reported that paperwork Hasbro filed with the SEC contained information announcing layoffs of 1,100 employees (20 percent of their entire workforce across all divisions) effective immediately.<ref>Template:Cite web</ref> A wide range of WotC employees were laid off;<ref>Template:Cite news</ref> Chase Carter of Dicebreaker commented: "past successes and future plans could not save Wizards of the Coast's workers from the hungry maw of corporate line-item reduction, and the full extent of this culling remains to be seen".<ref>Template:Cite web</ref>

In March 2024, Wizards of the Coast stopped localizing Magic: The Gathering and Dungeons & Dragons for Portuguese. The company received a vampetaço in retaliation.<ref>Template:Cite news</ref> Cynthia Williams resigned at the end of April 2024<ref>Template:Cite web</ref><ref>Template:Cite web</ref> and was replaced that summer by John Hight, who left his long-time role at Blizzard Entertainment to take the job.<ref>Template:Cite web</ref> The 3D virtual tabletop (VTT) Dungeons & Dragons simulator Sigil launched as part of D&D Beyond in March 2025.<ref name=":38">Template:Cite web</ref> Later that month, approximately 90% of the development team were laid off by WotC; in an internal communication, Hasbro Direct senior vice president Dan Rawson stated "our aspirations for Sigil as a large, standalone game with a distinct monetization path will not be realized".<ref name=":40">Template:Cite web</ref><ref name=":41">Template:Cite web</ref> Following the release of core rulebooks for the 2024 revision of Dungeons & Dragons, Creative Director Chris Perkins and Game Director Jeremy Crawford announced their departures from the company in April 2025. Christian Hoffer, for Screen Rant, highlighted that both "have been part of the Dungeons & Dragons design team for decades and were two of the lead designers of" Dungeons & Dragons 5th Edition.<ref name=":32">Template:Cite web</ref>

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