As someone who has been playing/collecting/investing in Magic since 1994, I am pretty sure Pokemon already has outgrown Magic.
Personally, I noticed the shift around 3-4 years ago and it is not necessarily MTG collectors converting, but rather Pokemon collector base being huge in comparison. MTG collectors do have more disposable income on average and that is why price movements seem more dramatic, but it also has less organic growth as a lot of it is driven by speculation and market buyouts.
Obviously, both hobbies are driven by nostalgia, but let’s delve a bit deeper and try to understand where each comes from, to try and make sense of where they are heading.
MTG - Predomminantly male community 30+ years old, financially literate, with high disposable income and nostalgic of playing the game during their teenage years. The parent company (WOTC) ostracizes community members based on political views, neglects LGS’s for the most part, and is driving direct to consumer online sales and shifting to online play.
Pokemon - Huge franchise and a household name across the whole world, pretty much everyone knows what a Pikachu is and the community is incredibly diverse and driven not exclusively by nostalgia of the TCG, but more importantly (in my opinion) nostalgia of the TV series, the Gameboy games, etc. The parent company (TPC) promotes the franchise across a huge spectrum of items and when it comes to the TCG, still relies on LGS’s and retailers for sales, it also promotes diversity and fun without getting political or creating friction with the community.
With the above in mind it is easy to see why Pokemon has a much more significant growth margin than MTG. I mean, a fan of the cartoon can easily start collecting cards of their favourite Pokemon without ever having played the game, or even understanding its rules.
Pokemon appeals to men and women, young and old and anything inbetween. The community is usually more open and welcoming and more sentimental in their attachment to their collection. Oddly enough, where you see this organic growth heavily at work is not in the high priced items, but rather in the low budget singles market. The sheer volume of Pokemon cards that get sold every day between the ($2-$20) mark is insane, and that is not coming from people who need the latest card for their deck, it is coming from people who love their Pikachus, their Eevees, their Charizards, etc.
MTG collectors on the other hand, are much more driven by value, and you rarely find a collector whose collection is all the Nissas or all the Chandras ever printed. The collecting community revolves mostly around the reserve list and there isn’t really anything giving players an emotional attachment to the characters in the game, which means that $2-$20 bracket is mostly filled by players and speculators rather than collectors.
Even though people tend to compare collectible markets based on their big ticket items, that is just a reflection of how much money is involved in the hobby and not necessarily how big that hobby is. To that end, I believe Pokemon is by far the ultimate collectible of our times and luckily it doesn’t look like TPC will run out of ideas to keep it that way anytime soon.