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Gamestop Selling Marvel Legends For $30 - Stick A Fork In Them

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I've gotten multiple reports of folks telling me Gamestop has raised the prices on their Marvel Legends to $30. If you watch financial news at all you've probably heard Gamestop continues to suffer financially. I think most have seen it coming for a while but seems like more than ever writing is on the wall for them now. The big question is how the toy industry as a whole will react to continued shrinking retail shelf space????

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GameStop, like many companies probably would been more successful as an online company only. Unfortunately they may have sunk themselves by trying to keep their storefronts open as long as they have. 

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Gamestop has always swindled people for money and once they got into a more collectibles game with action figures such as marvel legends it seemed like a good place. Ive never trusted Gamestop with games and even less now as Ive seen how they upcharge on every figure they own. This only proves my distrust in the company. I ve always felt they were a necessary evil for games but I definitely cant support them on this. Thankfully we have internet shopping and finding things online tends to be better, even on their own website. 

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when it was $23, that was reasonable given that they are a smaller operation than WM, WG or Target.. especially since it seemed like they often managed to get new waves before the other stores so it felt like just the price you pay for being to find a fig in the wild so early in the hunt.  

$30 is too far, unless there is a big increase coming at the bigger chains as well. And one wonders what this will do to the price of boxed sets. in the past, some box sets seemed to have a gamestop markup while others didn't.

I will regret seeing them go but imo there wasn't much they could do once streaming games took off.  t As Jay said, same as happened to retailers that sold physical copies of music and movies.  My local FYE just closed as well as 2 out of the 3 local Gamestops.  

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I used to do all my game preorders there as well as buy game point cards but after so many bad experiences with them I decided to stop. I Just got to a point where i didn't like the way they deal with the customers and how they operate ,that said i hate to see any business go under and people lose jobs. Hopefully they can turn their stores and public image around in time

i still go in gamestops now and then to kill time, but I try my darn'nest not to buy anything there anymore

 

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Gamestop has been a sinking ship for years. Between their high prices, the ridiculous trade values and the fact that they push their people to be pushy, heavy handed sales chasers is the biggest reason I've reverted ALL my game shopping online, even for physical copies. I do stop in every once in a blue moon while toy hunting and have not had much issue paying a few dollars more for an item I was looking for, but $10 more is a bridge too far. Good riddance. Disperse the few exclusives they do get among the various etailers or do them through Hasbro Pulse. Like many Game/Movie/Music stores of the past, instead of concentrating on superior customer service and knowledgeable workforce they fill the stores with every little niche and gimmick that they eventually end up selling on massive clearance or outright liquidate. They're most likely way over their heads in debt and are beyond recovery. Seriously if the had just marked their products just below MSRP, even by a few percent, then as a specialty store they would have boosted sales massively. I don't see how these people don't understand that. Take 2 or 3 dollars off a $60 product and watch how many people clamour to the store to save a few bucks, cuz $3 means a hell of a lot more to the peasants than it does the fat execs at the top. They'll operate for another year, just long enough to give the fat cats big fat raises and huge bonuses before the bottom drops out and they file for bankruptcy.

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The Canadian equivalent to Gamestop is EB Games and I'm surprised to see that Gamestop has increased the price of your legends. People pay 30$ for a Legend plus tax at my local EB Games. Which I believe is about 20$ USD at Gamestop I pay 27$ since I have the Edge card which gives me a 10% discount. I have spent a large amount of my money at EB Games on their figures and never have I felt swindled. Some figures are more expensive than others because they are not the regular releases or because they are larger figures, such as repacked BAFs, which I think is reasonable. The only problem I ever had with EB Games was the fact that sometimes, they received their cases later than others and they don't have a lot of Marvel Selects. other than that, I have nothing against EB Games. But to see their US counterpart be such scumbags just makes me happy that I live in Canada. This sucks and I hope Gamestop changes their way.

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It's an especially bad move by GameStop given the variable, algorithmic pricing that Amazon uses- if I can, say, get Rescue for $18.61 on Amazon, I might consider buying her for $22.99 in-person, so I can make sure the paint job is good, but $30.00??? Never mind the fact that lower-demand figures can be gotten on Amazon (and some other e-tailers who try to compete with their pricing) for MUCH less- How many figures are people going to buy from them for $30.00 that they can buy elsewhere for $12.00? I don't let myself play current video games (It would be way too easy for me to spend way too much time that I don't have on playing them.), but I pop in to GameStop sometimes when I'm near one, to check out the toys, and occasionally buy something. If this is how their pricing is going, I probably won't buy anything that isn't exclusive and/or on clearance.

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So, here's the thing, guys, and buckle up because this could take a while. As the video game industry has skewed further and further toward downloads, it has become all but impossible to maintain a retail store on video games alone. So, Gamestop has been forced to diversify in order to survive, which is why they've started carrying so many toys, collectables, and tabletop games. Unfortunately, the profit margin on toys and collectables is mostly garbage, and tabletop games are a weird fit for a side hustle (for a variety of reasons, about which I'm happy to elaborate if there's interest).

For context, I own a tabletop game shop that dabbles in Marvel Legends and Black Series, and we're about to celebrate our 11th anniversary, so take that for what it's worth. What I can tell you about Legends pricing is that, if there's greed in play, it's Hasbro's and/or Disney's. In order for a store like mine to stay afloat, we need to average about a 45% margin on all our sales. Why? That's just what it costs to stay in business. There are other percentages that matter too, but the actual dollar figures are largely irrelevant. What matters is that my overhead not be more than X% of my sales, and that my labour not be more than Y%, etc. In order for that not to be true, I would need to be a massive and diverse operation like Walmart, capable of leveraging sheer volume to my advantage, along with underpaid labour, wholesale-rate negotiation, and variety in the margins of products I carry. I don't have those advantages, and neither does Gamestop.

Legends wholesale for between $15 and $17 per figure, after shipping. When I sell those figures for $20 (or $21.50 as of this year), I make an unsustainably low amount of money. In order to make a sustainable margin, I should charge $30. I don't, because I'm a fan, and because I know I wouldn't personally pay $30 per figure. Toys are such a tertiary part of my business that I just accept the hit, to cater to fans like myself. If my toy sales picked up, I'd have to raise prices to compensate, which I realize sounds insane, but is what it is.

If I were smart, I'd raise my prices to $30, accept that my sales would drop for the department, but count on the strength of my full product line-up in tandem with my sustainable margins to pick up the slack. And I guarantee that's what Gamestop's doing. If I buy three toys at $17 each, and sell two of them for $30, I've just made $9 and I still have product on the shelves. I'd have to buy 9 figures for $17 and sell all of them to make the same amount of money selling at $18 per figure. And I'd have had to spend $153 up front to make $9, instead of just $51. Walmart and Amazon can spend $153 to make $9, for all the reasons I listed above, but nobody smaller than them can.

So, what I'm saying is:

1) If you want these toys to be sold in stores other than Walmart and Target, either Hasbro has to lower the wholesale cost, or consumers have to get used to higher prices. If Hasbro could get wholesale down to even $12, it would be no problem for smaller stores to sell for $20, but $17 is rough.

2) Walmart and Target do such a terrible job stocking these toys, in part, because they're loss leaders for them, not their bread and butter. Scarcity is always going to be an issue with these stores because they're only carrying the line to bring you through the door, with the hope that you remember you need batteries or a new hat once you're there.

3) Gamestop is banking on selling fewer toys, but to a less discerning market, namely parents. $20 is not a sustainable price, but $30 is. It's a way better deal for them to accept that collectors aren't their market and just sell a lower volume to the consumers who will pay more. That's not really greed, so much as survival instinct. They may well go out of business anyway, but they're working with the hand they've been dealt. Collectors aren't paying the bills.

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I know everyone loves to hate GameStop but as a small home business reseller myself who also buys wholesale I can vouch for what others have said, the problem is with Hasbro.  They're wholesale prices are ridiculously high, don't even get me started having to buy them wholesale through a distributor.  Anyway, if GameStop doesn't sell Legends for $30 you can bet they'll just stop carrying them at all.  To be honest sometimes I prefer going into a GameStop and paying premium for these figures, the reason being is that sometimes it's easier to find chase figures at GameStop.  As for the commons just wait until they have a sale,  coupon, or go on clearance.  

 

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30 quid for a Marvel Legends? Try living in Irealnd where a Marvel legends figure costs 35 quid and has for the last number of years.

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Scuttlebutt I've seen/heard over the last 12 hours or so leads me to believe that Hasbro is raising the MSRP of Marvel Legends to roughly $25 apiece, probably "officially" at/during Toy Fair, but some retailers (like obviously Gamestop) are already adjusting.

If I were a betting man, I'd say tariffs (or the threat thereof) are probably involved.

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1 hour ago, Jmacq1 said:

Scuttlebutt I've seen/heard over the last 12 hours or so leads me to believe that Hasbro is raising the MSRP of Marvel Legends to roughly $25 apiece, probably "officially" at/during Toy Fair, but some retailers (like obviously Gamestop) are already adjusting.

If I were a betting man, I'd say tariffs (or the threat thereof) are probably involved.

That seems like a pretty big jump, but it definitely makes some sense given the huge increase at Gamestop.  otherwise it seems like GS is cutting themselves off at the knees by charging way more than anybody else.   I definitely believe what Benn and others are saying about wholesale pricing but it seems weird to make your entire collectibles business model center on parents who are too oblivious to check amazon prices before shelling out $30 for an action figure.   If they check amazon and its selling the figure for $25, that's a different story.  

Although to me if MSRP goes up to $25 that suggests that perhaps the wholesale price is going up as well, and if that's the case small retailers are even worse off than before -  no increase in profit margin, but a more expensive product that fewer people will buy.

If the price goes up to $25  at WM/WG/Target, i'll just end up cherry picking even more than i currently do.   I suspect even more figures will pegwarm, plus figswapping and BAF part theft will increase  substantially.  Probably the number of folks ordering full cases and sets from e-tailers would drop at least a bit, as well.  I don't think it would kill the line or anything but it wouldn't be good.

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9 hours ago, Benn said:

So, here's the thing, guys, and buckle up because this could take a while. As the video game industry has skewed further and further toward downloads, it has become all but impossible to maintain a retail store on video games alone. So, Gamestop has been forced to diversify in order to survive, which is why they've started carrying so many toys, collectables, and tabletop games. Unfortunately, the profit margin on toys and collectables is mostly garbage, and tabletop games are a weird fit for a side hustle (for a variety of reasons, about which I'm happy to elaborate if there's interest).

For context, I own a tabletop game shop that dabbles in Marvel Legends and Black Series, and we're about to celebrate our 11th anniversary, so take that for what it's worth. What I can tell you about Legends pricing is that, if there's greed in play, it's Hasbro's and/or Disney's. In order for a store like mine to stay afloat, we need to average about a 45% margin on all our sales. Why? That's just what it costs to stay in business. There are other percentages that matter too, but the actual dollar figures are largely irrelevant. What matters is that my overhead not be more than X% of my sales, and that my labour not be more than Y%, etc. In order for that not to be true, I would need to be a massive and diverse operation like Walmart, capable of leveraging sheer volume to my advantage, along with underpaid labour, wholesale-rate negotiation, and variety in the margins of products I carry. I don't have those advantages, and neither does Gamestop.

Legends wholesale for between $15 and $17 per figure, after shipping. When I sell those figures for $20 (or $21.50 as of this year), I make an unsustainably low amount of money. In order to make a sustainable margin, I should charge $30. I don't, because I'm a fan, and because I know I wouldn't personally pay $30 per figure. Toys are such a tertiary part of my business that I just accept the hit, to cater to fans like myself. If my toy sales picked up, I'd have to raise prices to compensate, which I realize sounds insane, but is what it is.

If I were smart, I'd raise my prices to $30, accept that my sales would drop for the department, but count on the strength of my full product line-up in tandem with my sustainable margins to pick up the slack. And I guarantee that's what Gamestop's doing. If I buy three toys at $17 each, and sell two of them for $30, I've just made $9 and I still have product on the shelves. I'd have to buy 9 figures for $17 and sell all of them to make the same amount of money selling at $18 per figure. And I'd have had to spend $153 up front to make $9, instead of just $51. Walmart and Amazon can spend $153 to make $9, for all the reasons I listed above, but nobody smaller than them can.

So, what I'm saying is:

1) If you want these toys to be sold in stores other than Walmart and Target, either Hasbro has to lower the wholesale cost, or consumers have to get used to higher prices. If Hasbro could get wholesale down to even $12, it would be no problem for smaller stores to sell for $20, but $17 is rough.

2) Walmart and Target do such a terrible job stocking these toys, in part, because they're loss leaders for them, not their bread and butter. Scarcity is always going to be an issue with these stores because they're only carrying the line to bring you through the door, with the hope that you remember you need batteries or a new hat once you're there.

3) Gamestop is banking on selling fewer toys, but to a less discerning market, namely parents. $20 is not a sustainable price, but $30 is. It's a way better deal for them to accept that collectors aren't their market and just sell a lower volume to the consumers who will pay more. That's not really greed, so much as survival instinct. They may well go out of business anyway, but they're working with the hand they've been dealt. Collectors aren't paying the bills.

At the end of the day the action figure market in general I feel is doomed. You already saw it happen with 3.75" and as prices continue to rise you will see it happen with 6" as well. You can justify the price increases and point fingers at who's greed is to blame, the manufacturer, the license holder, the retailer, the factories, all the above, but at the end of the day your going to reach a point where you've simply  priced yourself right out of the market. This is the number one reason IMO for the demise of comic books. I don't care how much you can justify it, I am not going to pay $5 an issue to read comics on any regular basis. Gamestop IMO is done. They aren't going to save themselves on collectibles and their reputation as a reputable retailer continues to get tarnished more and more, but I doubt they will be the last to fall and I honestly don't see a very bright future for this entire industry. 

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35 minutes ago, bashpics99 said:

That seems like a pretty big jump, but it definitely makes some sense given the huge increase at Gamestop.  otherwise it seems like GS is cutting themselves off at the knees but charging way more than anybody else.   I definitely believe what Benn and others are saying about wholesale pricing but it seems weird to make your entire collectibles business model center on parents who are too oblivious to check amazon prices before shelling out $30 for an action figure.   If they check amazon and its selling the figure for $25, that's a different story.  

Although to me if MSRP goes up to $25 that suggests that perhaps the wholesale price is going up as well, and if that's the case small retailers are even worse off than before -  no increase in profit margin, but a more expensive product that fewer people will buy.

If the price goes up to $25  at WM/WG/Target, i'll just end up cherry picking even more than i currently do.   I suspect even more figures will pegwarm, plus figswapping and BAF part theft will increase  substantially.  Probably the number of folks ordering full cases and sets from e-tailers would drop at least a bit, as well.  I don't think it would kill the line or anything but it wouldn't be good.

Thing is, Gamestop isn't centering it's business model on "Parents who are too oblivious to check Amazon prices."  They're centering their business model (where action figures are concerned) on "Collectors who didn't manage to get it at retail price online and can't find it on any other store's shelves in the neighborhood and are willing to shell out a few extra bucks that'll still end up less than what it's going for on Ebay."  Not saying it's a smart move or that it's ultimately going to work out for them, but it's sure as heck not the "soccer mom market" that Gamestop is after.

And yes, if tariffs are involved, the wholesale price will be going up.  Tariffs are a charge on the manufacturer, and they will pass those costs on to their customers/the consumers or they risk shrinking or disappearing profit margins.

And yeah, it'll probably go up at WM/Target.  And Amazon for that matter.  Next year "below retail" on Amazon may well be what we're paying as "retail" now.

 

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26 minutes ago, JayC said:

At the end of the day the action figure market in general I feel is doomed. You already saw it happen with 3.75" and as prices continue to rise you will see it happen with 6" as well. You can justify the price increases and point fingers at who's greed is to blame, the manufacturer, the license holder, the retailer, the factories, all the above, but at the end of the day your going to reach a point where you've simply  priced yourself right out of the market. This is the number one reason IMO for the demise of comic books. I don't care how much you can justify it, I am not going to pay $5 an issue to read comics on any regular basis. Gamestop IMO is done. They aren't going to save themselves on collectibles and their reputation as a reputable retailer continues to get tarnished more and more, but I doubt they will be the last to fall and I honestly don't see a very bright future for this entire industry. 

Well, if the industry is doomed, at least hasbro has accomplished something quite special over the last couple of years (or more) in providing such a huge number of marvel characters. Yes there are all still characters we'd like to see made and we all question at least some of hasbro's choices at times but they've had an amazing run especially when you compare them to other action figure lines. 

I'm grateful that i got into collecting when i did (2014) and was able to build a collection that i view as mostly complete - even when it comes to my must-have figs for 2020 so far (Doom, Vulture, Shang-Chi and White Rabbit), i already had an older Doom fig and Ultimate Vulture, and Shang-Chi and White Rabbit are great but not really essential characters. 

I assume Black Series will have similar pricing to ML, i do think a price jump to $25 might well kill that line but who knows.

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4 minutes ago, bashpics99 said:

Well, if the industry is doomed, at least hasbro has accomplished something quite special over the last couple of years (or more) in providing such a huge number of marvel characters. Yes there are all still characters we'd like to see made and we all question at least some of hasbro's choices at times but they've had an amazing run especially when you compare them to other action figure lines. 

I'm grateful that i got into collecting when i did (2014) and was able to build a collection that i view as mostly complete - even when it comes to my must-have figs for 2020 so far (Doom, Vulture, Shang-Chi and White Rabbit), i already had an older Doom fig and Ultimate Vulture, and Shang-Chi and White Rabbit are great but not really essential characters. 

I assume Black Series will have similar pricing to ML, i do think a price jump to $25 might well kill that line but who knows.

LOL, its not going to go away overnight, but in general its hard to see where things go long-term. Prices will only go up, not down.

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Toys will be around in some form or another pretty much forever.

But the traditional action figure has pretty much been dying a slow death for a while.  It may be another 20 years before it's entirely the province of crowdfunded boutique/"artisan" lines, but it's getting there, and that last 5-10 years may be nothing but Titan Heroes.

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Like @BennI am also a (partial) owner of a specialty shop in neighboring state where I used to live and work and he does make a good point about the cost of toys and the fact that selling them in a store that cannot stock them in mass is a losing battle, but what I think Gamestop could have done is be a little more than competitive on the products they specialize in to make a model that works. For instance, my specialty shop was/is comics, as I'm sure many of you could have guessed. My partner and I decided long ago we were going to sell our main items at less than our competitors, but rather than just cut prices on the products themselves we just created a model where the customer got 10% off of comic book purchase of $10 or more just by walking in the door. We did carry some action figures and games almost as a necessary evil, cuz as you know, when you don't carry them people are constantly asking for them, and when you do carry them nobody seems to care. We make very little profit, if any, on those items, but if you bought enough comics to qualify for the discount we would extend the discount to any "other" items. I promise, the discount alone is what got them in the door and to this day continues to bring them in the door. And when the "other" products get too stale on the shelves we just sell them off at cost and replenish them with more current products. We were and still are very careful not to extend our "other" products to a level that would be counter productive to what we are good at selling. That's where Gamestop should have been the whole time. Be better at selling the products you specialized in and any purchases they make beyond that is gravy. Everyone knows it's about getting them in the doors first.

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30 minutes ago, monron999 said:

Like @BennI am also a (partial) owner of a specialty shop in neighboring state where I used to live and work and he does make a good point about the cost of toys and the fact that selling them in a store that cannot stock them in mass is a losing battle, but what I think Gamestop could have done is be a little more than competitive on the products they specialize in to make a model that works. For instance, my specialty shop was/is comics, as I'm sure many of you could have guessed. My partner and I decided long ago we were going to sell our main items at less than our competitors, but rather than just cut prices on the products themselves we just created a model where the customer got 10% off of comic book purchase of $10 or more just by walking in the door. We did carry some action figures and games almost as a necessary evil, cuz as you know, when you don't carry them people are constantly asking for them, and when you do carry them nobody seems to care. We make very little profit, if any, on those items, but if you bought enough comics to qualify for the discount we would extend the discount to any "other" items. I promise, the discount alone is what got them in the door and to this day continues to bring them in the door. And when the "other" products get too stale on the shelves we just sell them off at cost and replenish them with more current products. We were and still are very careful not to extend our "other" products to a level that would be counter productive to what we are good at selling. That's where Gamestop should have been the whole time. Be better at selling the products you specialized in and any purchases they make beyond that is gravy. Everyone knows it's about getting them in the doors first.

The thing is, most indications are that Gamestop is actually better at selling "the products beyond that" (Action Figures and Collectibles) than "the stuff they specialize in" (Video Games), or at least the action figure/collectible segment has been more profitable for them than the video game segment in the last year or two, which is why they keep expanding it. 

There's virtually no reason to buy new games at Gamestop and their used game prices (outside of sales/specials) are often barely competitive with new copies of older games (and newer used games barely sell for less than they cost new).  Even most game developers don't do retailer-exclusive preorder bonuses anymore (which to be clear is a GOOD thing, but it's no help to Gamestop).

 

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1 hour ago, JayC said:

At the end of the day the action figure market in general I feel is doomed.

I don't disagree. The way the industry works is bizarre, at least the parts of it with which I interact.

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I'd add that I can totally believe the trap of "Customers say they want us to carry action figures/toys but then don't buy them when we do."  Mostly because Customers are likely saying "We want you to carry action figures/toys but sell them to me for the same prices as Amazon/Wal-Mart/Target or even better, for less" which generally doesn't look to be possible at the margins FLCS's are usually operating.  So they get ordered, and probably outside the one or two "hot" figures from any given wave they proceed to take up space for far too long.

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15 minutes ago, bashpics99 said:

Well, if the industry is doomed, at least hasbro has accomplished something quite special over the last couple of years (or more) in providing such a huge number of marvel characters. Yes there are all still characters we'd like to see made and we all question at least some of hasbro's choices at times but they've had an amazing run especially when you compare them to other action figure lines. 

I'm grateful that i got into collecting when i did (2014) and was able to build a collection that i view as mostly complete - even when it comes to my must-have figs for 2020 so far (Doom, Vulture, Shang-Chi and White Rabbit), i already had an older Doom fig and Ultimate Vulture, and Shang-Chi and White Rabbit are great but not really essential characters. 

I assume Black Series will have similar pricing to ML, i do think a price jump to $25 might well kill that line but who knows.

I don't think @JayC is saying that the action figure market is going away completely (at least I don't think he's saying that) but it will change vastly from what we see today. Personally, I think the collector market is headed to a completely online venue. Of course, there are always going to be movie licensed products on the shelves but I think Hasbro's only hope of continuing the success of ML is to go to a 13 and above model for most of the comic based line. For the sake of the continuation of the line I can't say that I can argue with that. I think Hasbro would have a lot to gain by doing this and not having to submit to the more censored way they have to conduct the line to be on mass retail shelves. I see the whole Fan Channel as somewhat of a precursor to this. Just putting their feelers out to see if this concept would work. I think it can.

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5 minutes ago, monron999 said:

I don't think @JayC is saying that the action figure market is going away completely (at least I don't think he's saying that) but it will change vastly from what we see today. Personally, I think the collector market is headed to a completely online venue. Of course, there are always going to be movie licensed products on the shelves but I think Hasbro's only hope of continuing the success of ML is to go to a 13 and above model for most of the comic based line. For the sake of the continuation of the line I can't say that I can argue with that. I think Hasbro would have a lot to gain by doing this and not having to submit to the more censored way they have to conduct the line to be on mass retail shelves. I see the whole Fan Channel as somewhat of a precursor to this. Just putting their feelers out to see if this concept would work. I think it can.

I think if it reaches that point we're likely to see more instances like Super 7 and Mattel's agreement.  Hasbro itself trying to sell action figures solely to adult collectors online would likely be seen as "beneath them/degrading" by Hasbro shareholders.  They're supposed to be a mass retail company, and if a line can't survive at mass retail, then they shouldn't waste time and resources on it, and instead focus on the things that are successful at mass retail.

But then again, Hasbro wants to shift to being more of a media company than a toy company, so they may well be licensing out their brands to other manufacturers to make toys sometime in the next couple decades regardless.

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