How Hasbro and Mattel Are Adapting too the Changing Toy Industry

Transforming Market Dynamics Between Two Toy Titans

the competition between Hasbro and Mattel, two leading forces in the toy industry, has become increasingly fierce.Currently,Hasbro holds a competitive advantage,largely fueled by the sustained popularity of a trading card game that has thrived for over three decades. Historically, both companies have vied for dominance by securing exclusive master licenses to produce toys based on beloved franchises such as Disney princesses and “Star Wars.”

Although Mattel reported higher total revenue-$5.3 billion compared to Hasbro’s $4.7 billion in fiscal year 2025-its growth has stalled with a slight 1% decline. in contrast, Hasbro experienced robust sales growth of 14%, signaling stronger momentum.

This divergence is also evident in stock market performance: Mattel’s shares have fallen more than 20% over the past year, trading near $17 per share, while Hasbro’s stock surged approximately 46%, reaching around $100 per share.

The Powerhouse Behind Hasbro’s Surge: Wizards of the Coast

A key factor driving Hasbro’s recent success is its subsidiary wizards of the Coast (WotC), which manages popular properties like Dungeons & Dragons, Magic: the Gathering, and an expanding lineup of digital games. In 2025 alone, WotC’s revenue jumped by an remarkable 45%, hitting $2.1 billion.

This segment accounts for less than half of Hasbro’s overall revenue but astonishingly contributes nearly 88% of its adjusted profits-a clear indicator of its strategic value and profitability.

The Lasting Popularity of Magic: The Gathering

Magic: The Gathering, introduced in 1993 as a competitive trading card game where players build custom decks filled with spells and creatures to duel opponents, remains central to WotC’s success. Recently, Wizards expanded Magic’s universe by launching sets inspired by new intellectual properties such as Netflix’s “Stranger Things,” Sony’s “Ghostbusters,” and Amazon Prime Video’s adaptation of “The Wheel of Time.”

A remarkable milestone occurred mid-2025 when a new expansion themed around “Cyberpunk” shattered records by generating $220 million in sales within just one day-the fastest launch ever recorded for any Magic set.

“They’ve successfully broadened their audience across multiple generations,” said industry analyst Maya Chen. “the player base continues growing while staying deeply engaged through innovative gameplay mechanics and fresh content.”

Tournament Scene spurs Community Growth

The organized play ecosystem surrounding Magic has flourished alongside product releases; over one million unique players participated in sanctioned tournaments during 2025-a surge exceeding 20% from the previous year. Additionally, venues hosting these events under the wizards Play network increased roughly 25%, surpassing more than 12,000 locations worldwide.

this thriving community infrastructure offers diverse entry points into gameplay through various product formats and engagement opportunities-positioning Magic well for long-term expansion.

Expanding Horizons Through Digital Gaming Ventures

The digital gaming division within Wizards also posted positive results last year with revenues climbing about 6%. Titles like “Monopoly Go!” contributed considerably to this growth amid shifting consumer preferences favoring online interactive experiences. To capitalize on this trend, Hasbro invested heavily-including establishing an interactive video game studio based in Vancouver-to enhance its digital portfolio further.

Mattel Accelerates its Digital Change Efforts

Matter-of-factly behind Hasbro’s established gaming presence but making strides nonetheless is Mattel’s emerging digital strategy. A pivotal move was acquiring full ownership from partner NetEase for their joint mobile gaming venture focused on titles such as Uno variants and Phase Ten adaptations; since inception they have launched five mobile games targeting casual gamers worldwide.

“Mattel appears positioned at an early stage similar to where Hasbro stood seven years ago,” observed research analyst Keegan Cox. “While not yet matching Hasbro directly, strong mobile games tied closely to their IP could substantially boost margins over time.”

Tackling Challenges Within Core Product lines Amid Demographic Shifts

• Dolls: Barbie sales declined approximately 7% last year;
• Baby Products: Fisher-Price experienced nearly double-digit drops among infant-to-preschool categories;

This downturn reflects broader demographic trends including slower birth rates combined with younger children engaging earlier with electronic devices-altering conventional play patterns significantly.

• Hot Wheels: Contrastingly enjoyed strong performance with gross billings up about 11% during this period;

This mixed landscape highlights how evolving consumer behaviors require toy manufacturers to adapt swiftly across different age groups today.

A Positive Outlook Supported By Industry Resilience And New Releases

The U.S toy market rebounded strongly throughout 2025-with total dollar sales increasing roughly 6%, accompanied‌ by unit volume gains near 3%. This counters concerns that inflation or economic pressures might dampen family spending on discretionary items like toys.

“Growth in unit sales indicates genuine demand rather than just price inflation effects,” explained James zahn from The Toy Insider.

• < strong >Mattel:< / strong > Upcoming film tie-ins include “Masters of the Universe” (June) and “Matchbox” (October), expected drivers despite modest box office impact;< / li >
• < strong >Mattel:< / strong > Retains master licenses for major franchises such as “Toy Story” (with a fifth installment forthcoming) along with Disney princesses including live-action adaptations like “Moana.”< / li >
• < strong >Has bro:< / strong > Licensed products will feature characters from hits like “The Mandalorian,” Spider-Man (“Brand New Day”), plus Marvel Avengers-themed collections;< / li >
  

  A Collaborative Venture Unlocks New Franchise Potential

  < p >An exciting partnership between both companies involves producing merchandise linked⁣to Netflix’s animated hit “< em>KPop Demon Hunters< / em>“. This collaboration aims at delivering diverse products ranging⁢from dolls through foam roleplay gear designed to capture fan enthusiasm across multiple categories.< br >

  < blockquote >“‘KPop Demon Hunters’ represents significant commercial potential benefiting both firms,” Zahn remarked.< / blockquote >

  Synthesis: Navigating Innovation Amidst Industry Evolution

  < p >As traditional toy segments face headwinds due to shifting demographics alongside technology-driven entertainment alternatives , innovation via strategic licensing , fostering community engagement through organized play ,and expanding into digital platforms remain essential pillars supporting ongoing growth. While Mattel intensifies efforts building out its gaming footprint ,Has bro ‘s diversified approach centered around iconic brands like Magic : The Gathering positions it advantageously within today ‘s dynamic marketplace . Both continue leveraging multimedia collaborations-from blockbuster films to streaming sensations-to attract new audiences ,ensuring they stay relevant influencers shaping childhood experiences globally .< / p >