From today's Los Angeles Times:
Wednesday, December 8, 1999
Hasbro Reorganizes to Home In on High-Tech
From Associated Press
PROVIDENCE, R.I.--Hasbro Inc. on Tuesday announced a broad reorganization
designed to allow the world's No. 2 toy maker to expand its offerings of
high-tech toys and its popular core brands, including Furby and Pokemon.
Hasbro will cut 2,200 jobs, or 19% of its work force, close two plants
in Mexico and England and shift much of its manufacturing to Asia. It will
also discontinue some of its underperforming toys.
Pawtucket, R.I.-based Hasbro will take a pre-tax charge of $141 million
in the fourth quarter to cover restructuring costs.
Like many toy companies in recent years, Hasbro has been stepping up
its high-tech offerings to make playtime more entertaining and challenging
for today's computer-literate kids.
Hasbro, which trails No. 1 toy maker Mattel by a narrow margin, has
seen tremendous growth in its interactive division, which produces computer
and video games, as well as play-sets that connect with PCs.
Hasbro said it will focus on building its interactive offerings and
extending its best-selling brands, such as "Star Wars," Pokemon, Furby,
Tonka, and Easy Bake Oven.
"They're moving into a whole kids entertainment company . . . it's the
way the toy industry has to go," said Chris Byrne, editor of the New
York-based Toy Report and an industry consultant.
But Cliff Annicelli, managing editor of Playthings Magazine in New
York, said Hasbro's reorganization moves the company into a "high profile,
higher risk area" of toy making.
He said the areas Hasbro plans to streamline--preschool, creative play
and girls' toys--"are pretty stable categories I thought were part of the
base the company was built on."
Investors on Wall Street wavered on the Hasbro announcement. The stock
was down 19 cents to $21.25 on the New York Stock Exchange, but fell as much
$1.50 earlier in the day.
Under the reorganization, Hasbro will close plants in Tijuana and in
Ashford, England. Of the 2,200 jobs that will be cut, about 1,850 will be
manufacturing positions.
About 300 jobs will be cut in the United States.
Hasbro also plans to discontinue some toys, including Formula One
racing toys, some of its large dolls and a flight simulator.
Hasbro expects that its fourth-quarter and year-end earnings will
remain in line with Wall Street analysts' expectations. The company said it
expects the restructuring to generate savings of $16 million next year and
$23 million a year thereafter.
The company also announced a $500-million stock repurchase program.
: Hasbro will cut 2,200 jobs, or 19% of its work force, close two plants
: in Mexico and England and shift much of its manufacturing to Asia. It will
: also discontinue some of its underperforming toys.
: About 300 jobs will be cut in the United States.
Hasbro pulls a Nike. Now I will definitely not buy an Easy-Bake oven
built in a sweatshop.
: Hasbro also plans to discontinue some toys, including Formula One
: racing toys, some of its large dolls and a flight simulator.
Is a sim a toy?
Stephen
> : Hasbro also plans to discontinue some toys, including Formula One
> : racing toys, some of its large dolls and a flight simulator.
> Is a sim a toy?
> Stephen
It's product. To the kind of people that make these decisions everything
is product. Its the MBA way. If the product does not perform to financial
expectations then it'll be axed. We are not dealing with visionaries here:
these are simple minded ( not necessarily a derogative term in this context)
business people that see their focus as maximizing corporate income. That
you and I as individuals are pleased with a product is pretty much
irrelevant to someone who thinks in terms of the mass market.
That being said I'd guess that GP3 is safe from the fate that befell
Falcon 4. After his GP2 experiences I'd think that Geoff Crammond probably
made sure that he had a lot more control over the way his sim is handled.
David
From reading some of the posts in the flight sim group. I would have
to agree, that GP3 isnt necessarily destined to fall as Falcon 4 did.
Falcon 4 appeared to have taken a very long time to produce, and when
released was less than "stellar" in its performance. MBA's may be
"business" minded.........but thats what they should be.:-) There
function is to produce the highest possible income for their
investors. If Falcon 4 was a money losing proposition then it had to
be axed. If GP3 is enough of a money maker then I imagine it will
prosper. (hope so)
*Bendragon*
this dragon has flown.....
>: About 300 jobs will be cut in the United States.
>Hasbro pulls a Nike. Now I will definitely not buy an Easy-Bake oven
>built in a sweatshop.
Have to admit that's what it looks like ... 'fraid I'm gonna have to
knock them off my shopping list too. :-(
Joe McGinn
_________________________
GA-Sports Writer
http://www.ga-sports.com/
What a ***, eh.
I guess it goes back to the point that games don't NEED to reach the mass
market to be successfull. How many times will it take before game producers
start to think that way ? Even if it means a lower budget for the
development team, it will be a good thing at the end. Less rushed out
titles, that means less bugs.
Well, I love Roller Coaster Tycoon, but those announcment won't make me buy
the expansion pack.
Also, I will limit my Star Wars merchandising to other brands than Hasbro.
--
-- Fran?ois Mnard <ymenard>
-- May the Downforce be with you...
"People think it must be fun to be a super genius, but they don't realise
how hard it is to put up with all the idiots in the world."
.
So this is free trade, eh?
Rik Anthrax
-
-
"trust the government?? what are you, some kind of moron?"
> It was a day that will live in infamy . . . I really didn't like the
> verbiage about how "Falcon 4 has done reasonably well for us, but it's
> a niche market." Seems to me like driving sims fall into this category
> as well. Is GP3 in trouble, too, perhaps?
Seems to me we'll probably see the great wheel turn again. That
is, the big publishing houses with do their inevitable
down-sizing and thent heir titles apeal to a more mass market.
The niche gamers start clamoring for titles they used to be able
to buy. The old developers decide to form a small development
company to make some of those niche titles again (like how they
started). Public acclaim arrives, the dovelopment copany gets
bigger, then gets bought by a big publishing house... and so on.
We may not see big flight sims from the big boys, but we
certainly could start seeing them from the 'young punk' small
houses again. At least that's what I hope to see. :)
--
|_
Oo\ Alex | Quantum materiae materietur marmota monax si
[email hidden] | marmota monax materiam possit materiari?
Joe62 wrote:
> Have to admit that's what it looks like ... 'fraid I'm gonna have to
> knock them off my shopping list too. :-(
How can anyone not buy GP3 (when and if it comes out)?
--
Ari Nieminen
Remove .NOSPAM from my e-mail address when replying.
You may very well be right -- we may be seeing this already, in fact,
if you consider what the "young punk" small house Ratbag group has
brought us with their new DTR product, compared to the rehashed NASCAR
products we're seeing from the "big boys" at Papy.
-- JB
In article <[email hidden]>,
Alexander J Rhodes <[email hidden]> wrote:
> > It was a day that will live in infamy . . . I really didn't like the
> > verbiage about how "Falcon 4 has done reasonably well for us, butit's
> > a niche market." Seems to me like driving sims fall into thiscategory
Sent via Deja.com http://www.deja.com/
Before you buy.
Quoted text (19 lines)
> > as well. Is GP3 in trouble, too, perhaps? > > Seems to me we'll probably see the great wheel turn again. That > is, the big publishing houses with do their inevitable > down-sizing and thent heir titles apeal to a more mass market. > The niche gamers start clamoring for titles they used to be able > to buy. The old developers decide to form a small development > company to make some of those niche titles again (like how they > started). Public acclaim arrives, the dovelopment copany gets > bigger, then gets bought by a big publishing house... and so on. > We may not see big flight sims from the big boys, but we > certainly could start seeing them from the 'young punk' small > houses again. At least that's what I hope to see. :) > -- > > |_ > Oo\ Alex | Quantum materiae materietur marmota monax si > [email hidden] | marmota monax materiam possit materiari? >I think that is a bit unfair, to drag Papyrus int this
comparison....Uf you want to clamp down on somebody,
don't you think that the racing games from EA (NASCAR revolution etc)
would fit the bill better?
--
Robert S?derberg
If replying by mail,remove the word INGENSPAM from the adress.
I agree 100%. Why slam on Papyrus when NO OTHER COMPANY has made racing sims
(games, whatever) as good as theirs.
Me too. Sometimes, I think other developers are all blindness. =)
GP3 will become the exception, I wish.
Y.Minami
