Strong Growth
In 1997 revenues increased 145% going from USD$35 million to $86 million.
Hasbro Interactive embarked on both internal and external development, and acquired some smaller video game developers and publishers such as MicroProse for $70 million and Avalon Hill for $6 million both in 1998. Hasbro acquired the rights for 300 games when it purchased Avalon Hill. With those acquisitions Hasbro Interactive revenues increased 127% in 1998 to $196 million and profits of $23 million. Hasbro Interactive was growing so fast that there was talk of reaching $1 billion in revenues by 2002. They also purchased the remaining brands and other intellectual property rights of Atari Corp. from JTS, and engaged in some other video game licensing, such as Frogger from Konami. They sought to use Hasbro board game brands, MicroProse titles, Avalon Hill and Wizards of the Coast as leverage to increase revenues.
Hasbro Interactive became the #3 video game publisher within three years of its founding. But in 1999, Hasbro Interactive lost $74 million on revenues of $237 million a growth of just 20% over the previous year. Late in 1999 with several game projects underway and dozens of new employees, many of who moved just to work for the company, Hasbro Interactive shut down several studios in a cost-cutting move. The studios affected included the former MicroProse offices located in Alameda, California and Chapel Hill, North Carolina. In 4 years Hasbro Interactive's revenue increased 577%.
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Famous quotes containing the words strong and/or growth:
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—Victor Heerman (1893–1977)
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—Ralph Waldo Emerson (1803–1882)