Hasbro’sStar Warsaction figures are “challenged” and “dragged down,” but what’s actually gone wrong for the Black Series and Vintage Collection - and can the problems be fixed? Hasbro’s end-of-year reports revealed 2024 was a tough year;sales declined by 12%, while revenue dropped by 17% for the full year. A lot of this was due to the sale of eOne, but Hasbro also singled outStar Warsin the last two earnings calls.
The facts were laid out with unusual bluntness inHasbro’s Q3 2024 earnings call:
“Toy revenue softness was due in part to our decision to sell less closeout volume in favor of higher profitability, as well as incremental softness in action figures, particularly Star Wars. We view action figures as a long-term bet for the Company and a place Hasbro has special strength from preschoolers to kids to adult fans. So we are bullish about this segment’s eventual return to growth.”
Star Warsgot another meaning inHasbro’s Q4 2024 earnings call, where sales were described as “challenging” and “dragged down.” What’s going on?
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Star Wars Merchandise Has Been Struggling For Years
Back in the 1970s, George Lucas smartly negotiated a contract where he benefited fromStar Warsmerchandise - and it became the secret to his success. It all began with Kenner, and nowadays that legacy continues with Hasbro (literally; the Vintage Collection figures are literally designed as an appeal to nostalgia, packaged like Kenner products and scaled appropriately). But the problems withStar Warsbegan in 2018, when Toys R Us went bankrupt.Hasbro relied heavily on Toys R Us for sales, and was forced to reconfigure supply chains.
Licensed toy sales are dependent on blockbuster success, andStar Warshasn’t released a single movie since 2019. Worse still,the cost of living crisis in 2023 led to a decline in the entire market, and sales in 2024 were flat. Industry experts hoped that a stabilizing economy, more major box office releases, and an anticipated string of streaming successes would help sales recover. But it didn’t quite pan out forStar Wars.
Lucasfilm Bet The House On The Acolyte
2024 was not a good year forStar Wars- certainly not as far as streaming was concerned. Lucasfilm placed a heavy bet on Leslye Headland’sThe Acolyte, positioned to launch a whole new era inStar Wars. The studio’s hopes are evident when you look at the staggering number of tie-ins, ranging from comics to variant covers, from action figures to novels. Unfortunately,The Acolyteproved deeply controversial, and viewing figures were disappointing.
“The Acolyte was really the first one that I think you would say is legitimately poor performance comparative to the other Star Wars shows,” Jimmy Doyle - Director and Film & TV analyst at Luminate - toldScreenRant. “Now that said, this is still one of the biggest shows on Disney+ this year,“he continued.“It’s just lower than where that level has been set for the Star Wars titles.“The Acolytewas canceledby Disney; the experiment had failed to pay off.
Star Wars 2024 In Review: We Talk To A Top Streaming Expert About The Acolyte, Skeleton Crew, Star Wars Fatigue, & More
Exclusive: What’s really been going on with Star Wars in 2024? We talk to streaming expert Jimmy Doyle from Luminate about The Acolyte and more.
This was likely a major factor in Hasbro’s 2024 problems when it came toStar Wars.The AcolyteBlack Series and Vintage Collection action figures were stunning, beautifully designed, butthey were unlikely to sell well given the show’s low viewership and controversial reception.Star Wars: Skeleton Crewwas quite niche, failing to break the streaming top 10 charts, and I can’t see those action figures selling as well as they deserve.
Star Wars Is Going Through A Slow Period
The Acolyte’s controversies seemed to signal something of a “dead period” forStar Wars, and it was shocking to see how engagement with the franchise declined on social media. We felt the impact here, but it wasStar Wars News Net’s assessment that really struck me; they summed up 2024 as a “challenging year… withStar Wars interest at an all-time low since the Disney acquisition.” Anecdotally, I do thinkSkeleton Crewchanged the mood, introducing a much-needed shot of positivity, but it really only drew in the hardcore fandom.
Lucasfilm clearly believe this year’sAndorseason 2will be a hit; demand is high enough that the show trended during Super Bowl even though the studio didn’t release a trailer there. The question, though, is whetherAndorwill appeal to the same portions of the fanbase - thus driving action figure sales.Hasbro seem optimistic, recently announcing a range ofAndor-related action figures.
But here’s the catch; afterAndor, with the possible exception of some sort of as-yet-unannounced animated show, we’re expecting precious little newStar Warsuntil 2026’sThe Mandalorian and Grogumovie. Until then, I expect Hasbro to double down on best-sellers - think more Din Djarin, more Darth Vader - with some more niche collectibles to keep the collectors online. I’m afraidI don’t anticipateStar Warstoy sales increasing massively, at least until Christmas, when I wouldn’t be surprised to see a lot of Mandalorian and Grogu merch.
The Mandalorian and Grogu Needs To Be A Success
To be fair, I don’t think Hasbro is surprised by this. Look again at that Q3 statement: “We view action figures asa long-term bet for the Companyand a place Hasbro has special strength from preschoolers to kids to adult fans. So we are bullish about this segment’seventualreturn to growth.” In other words, Hasbro know this year will be a slow one forStar Wars, and all hopes rest onThe Mandalorian and Grogu.
An awful lot of pressure rests on that one movie. It will markStar Wars' return to the big screen at last, and it features characters who have been a hit on streaming, and who already have a significant cultural impact. Luminate’s Jimmy Doyle described the appeal of Jon Favreau’s film perfectly:
“You never got a subscription to Disney+. Do you wanna finally see baby Yoda in a movie theater, in a thing? You bought all the merchandise even though you’ve never watched the show. Come see this movie.”
This does feel like a make-or-break moment forStar Wars. Lucasfilm - and the merchandising companies the studio works with - needThe Mandalorian and Groguto be a hit. Nobody would ever bet against Jon Favreau, but that’s a lot of pressure.
