Hasbro and Mattel: A Tale of Diverging Paths in the Toy Industry

The rivalry between toy manufacturers Hasbro and Mattel has intensified as both companies navigate a shifting market landscape. While Mattel's revenue remains higher, Hasbro has recently outperformed its competitor in terms of growth. For the fiscal year 2025, Hasbro reported a revenue increase of 14%, reaching $4.7 billion, while Mattel's net sales decreased by 1% to $5.3 billion. This divergence highlights the contrasting trajectories of the two companies amid evolving consumer preferences.

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A significant factor in Hasbro's recent success is its Wizards of the Coast division, which includes popular franchises like Dungeons & Dragons and Magic: The Gathering. In 2025, Wizards of the Coast generated $2.1 billion in revenue, a 45% increase from the previous year. This growth is attributed to the expansion of Magic: The Gathering, which has introduced card sets based on various intellectual properties, including "Avatar: The Last Airbender" and Marvel's "Spider-Man." The release of a "Final Fantasy" set in mid-2025 set a record, generating $200 million in sales within a single day.

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As traditional toy sales decline, Hasbro has successfully pivoted towards digital and role-playing games. The company has reported a 6% revenue increase in its digital gaming segment, driven by the success of "Monopoly Go!" Hasbro's CEO, Chris Cocks, emphasized the importance of adapting to modern consumer preferences, stating that the company is building a system of play with multiple entry points and engagement paths. In contrast, Mattel is in the early stages of developing its digital gaming presence, recently acquiring full ownership of its Mattel163 joint venture, which has launched four digital games since 2018.

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Despite Hasbro's growth, the company faces challenges, including a decline in its film and TV business following the divestment of eOne and the impact of Hollywood's labor strikes in 2023. Meanwhile, Mattel's stagnation has raised concerns among analysts, with its stock price dropping over 20% in the past year. Eric Handler from Roth Capital Partners noted that Mattel's revenue has remained in a tight range for five years, indicating potential difficulties in regaining momentum.

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Looking ahead, Hasbro plans to continue expanding its Magic: The Gathering offerings with new sets based on "The Hobbit," "Teenage Mutant Ninja Turtles," and "Star Trek" in 2026. The company forecasts mid-single-digit growth for its Wizards division, although some analysts consider this estimate conservative. Conversely, Mattel's future in the digital space remains uncertain as it works to establish a more robust gaming portfolio.

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• "Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way." — Chris Cocks, CEO of Hasbro

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• "They have done a fantastic job of widening the funnel in the last couple years, and it's become a multigenerational type of product." — Eric Handler, Managing Director at Roth Capital Partners

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• "In our view, [Mattel] is in the early stages of an investment similar to Hasbro's investment in gaming over 7 years ago." — Keegan Cox, Associate Vice President at D.A. Davidson

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This analysis underscores the contrasting strategies and performances of Hasbro and Mattel as they adapt to the evolving toy and gaming markets.

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