The toy market slowdown still has its grips on Hasbro, which reported a double-digit sales dip in its third-quarter results today. 

The toyco generated US$1.5 billion in global net revenue in July, August and September to finish down by 10% from the same period last year (US$1.67 billion). Impacted by the writers and actors strikes, Hasbro’s entertainment segment was hit the hardest in Q3, generating 42% less revenue at US$122 million. But consumer products also underperformed by 18% (US$956 million). 

Hasbro’s combined Wizards of the Coast and digital gaming segment was the only business that grew, posting US$424 million in quarterly revenue, up 40% from last year’s Q3 (US$303 million). This bump was driven by recently launched licensed digital games Monopoly Go! (Scopely) and Baldur’s Gate III (Larian Studios), which together have earned US$63 million. 

According to its Q3 report, Hasbro now expects its year-end revenue to decline by 13% to 15%, in light of softer toy-buying trends and bloated retail inventory levels that aren’t leaving much shelf space for new products. 

The sale of Hasbro’s eOne film and TV business to Lionsgate is on track to close by the end of the year as part of the company’s strategy to refocus its attention on supporting its core toy brands. 

“Our plan for Q4 is to drive share over the holiday and exit the year with clean inventory, a much-improved corporate overhead, and a clear runway for introducing new product innovation and go-to-market support in the quarters ahead,” said CEO Chris Cocks in a release.