Mysterious Stranger wrote:
It's more than just the price of oil. There are increased labor costs in China, transportation costs are rising as well plus a general increase in the level of detail going into the figures themselves that makes production more costly. You also have to figure in the licensing costs for the movie figures. I may be wrong about this but from what I understand the movie designs (i.e. the character looks, movie logos, etc) are owned by Paramount. Hasbro has to pay Paramount a licensing fee to produce those toys just like all other licensed toys. Yes Hasbro owns the G.I. Joe IP but Paramount owns the films. Its a wicked circle of complexity but that's the way it works in Hollywood.
I am not positive about how it all works but I doubt that Paramount has any stake in the movies. They did not produce them they were Produced by Hasbro, I think that means that Hasbro owns the movies. Paramount was simply brought in for distribution. Paramount is a Production company and a Distribution company but I do not think they own anything unless they actually produce it. But I am just a layman on the subject.
AdrienVeidt wrote:
Which will be mercilessly and tidily be sorted out once Disney buys Hasbro.
As the drop in oil prices seem to be global power play to put Putin in his place, who knows how long they'll continue to be 'artificially' low? The toy companies would be smart to keep to their high oil cost plans and pocket the difference. Assuming sales justify it, of course.
I think the drop in oil price WAS a global power play but I think that ended around $2.50 or $3 a gallon. I think we started it (convincing Saudia Arabia to lower their price) to get Putin but that led to a free market race to the bottom. Once one player lowered price to where we asked them too then all other competitors jumped in to get lower to stay relevant in the marketplace and keep from losing sales. From there it snowballed.
The high oil price was largely supported by a stock market bubble this bubble was kept alive by the fear caused by 911. The problem is now the stock market is scared of oil futures. such a rapid freefall makes it appear to be a much riskier gamble then it was thought of 2 months ago. I do not think it will climb back up to $3 a gallon for at least a couple of years maybe more.
Some are predicting that oil will keep plummeting and will wind up at $15 a barrel before the fall stabilizes. I personally do not expect it to drop more below $30 a barrel if it even gets that low but I do not think it will climb back above $60 a barrel very quickly