Tuesday, July 24, 2007

3 Million Transformers Sold

Hasbro reported that higher profits and sales in a large part due to the success of Transformers and its related product line. "'Transformers' has been a unique box office success. Our U.S. retail sales of [the new] Transformers toys have exceeded our expectations with 3 million units sold since the launch," Hasbro CEO Alfred Verrecchia said during a conference call with analysts to discuss the company's results. He also said that a second movie is possible but then we already knew that.

An additional comment of note, due to Hasbro not making money off the movie itself was, "A number of our brands have a [movie] potential and we are working on several opportunities. Right now we have not financed 'Transformers,' but that could change in the future," Verrecchia said. He declined to elaborate. This is an important comment as one of the largest barriers to movie making is financing. Studios like it when they can share the risk with others.

The rest of the report was about Hasbro's other properties, Barbie, games and so forth. The main takeaway for Transfans is the line has a bright future and probably many converts. The only thing that Hasbro's participation in financing a Transformers sequel would mean a larger budget, but realistically if I where Dreamworks I would decline as the Transformers franchise is now proven to be a probably success so sharing the risk (and therefore the profits) is not a necessity.
(Source)

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