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A Longstanding Rivalry Enters a New Phase

For decades, Hasbro and Mattel have traded leadership in the global toy market, competing fiercely for blockbuster licenses and shelf space tied to major entertainment franchises. But as the industry rebounds from a post-pandemic slowdown, investors are increasingly favoring Hasbro, which has managed to return to consistent growth while its rival navigates uneven demand across core brands.

In fiscal 2025, Hasbro generated roughly $4.7 billion in revenue, up 14% year over year, while Mattel reported about $5.3 billion, a slight 1% decline. The contrast has been even more visible in the stock market, where Hasbro shares have climbed sharply over the past year while Mattel’s valuation has faced pressure amid slower organic growth.

The Profit Engine Driving Hasbro’s Momentum

A key factor behind Hasbro’s outperformance is its Wizards of the Coast division, home to blockbuster franchises such as Magic: The Gathering and Dungeons & Dragons. The segment has evolved from a niche tabletop business into a major profit generator, blending physical products, digital experiences, and licensing partnerships.

In 2025, the division delivered approximately $2.1 billion in revenue, a 45% surge, and accounted for nearly nine-tenths of the company’s adjusted operating profit. Premium releases, limited-run collector packs, and crossover sets tied to major entertainment franchises have driven both higher margins and deeper fan engagement.

One standout release generated about $200 million in sales within a single day, underscoring the franchise’s ability to create blockbuster-style launches more commonly associated with video games or films.

Expanding the Player Ecosystem

Hasbro’s strategy has centered on building a broad, multi-entry ecosystem rather than relying solely on traditional toy sales. Organized play participation surpassed 1 million unique players in 2025, a 22% annual increase, while the network of hobby stores hosting official events grew to more than 10,000 locations worldwide.

This approach has transformed the brand into a recurring-revenue model with strong customer loyalty. Analysts often describe the audience as “sticky,” meaning players consistently return for new content, expansions, and experiences. Upcoming releases tied to well-known franchises are expected to sustain engagement and broaden the consumer base further.

Digital Gaming Adds Another Growth Layer

Beyond tabletop products, Hasbro has expanded into digital gaming, an area that aligns with changing consumer behavior as play increasingly shifts online. Revenue from digital and licensed games rose mid-single digits last year, supported by mobile hits and new development initiatives, including an internal studio focused on long-term franchise expansion.

By contrast, Mattel is still building out its digital capabilities. The company recently moved to take full ownership of its mobile gaming venture, signaling a longer-term push to monetize its intellectual property through apps and online platforms. Industry observers see this as an important step, but one that trails Hasbro’s multi-year head start.

Mixed Performance Across Mattel’s Core Brands

Mattel continues to benefit from iconic properties, yet performance has been uneven across categories. Its vehicles segment posted double-digit growth, but declines in dolls and preschool products weighed on overall results. Shifting consumer habits, including earlier adoption of digital entertainment and slower population growth in younger age groups, have pressured traditional toy categories for more than a decade.

Even so, the broader toy market has shown signs of stabilization. U.S. toy sales by value rose about 6% in 2025, with unit volumes up roughly 3%, suggesting consumers are still buying toys despite economic uncertainty.

Entertainment Partnerships Remain a Key Catalyst

Both companies are positioning for a strong pipeline of entertainment tie-ins, which historically drive spikes in toy demand. Major film releases and streaming hits often translate into higher merchandise sales in the quarters surrounding premieres, providing a cyclical boost to revenue.

Hasbro and Mattel also continue to collaborate on select projects, reflecting the increasingly interconnected nature of modern entertainment licensing, where shared franchises can benefit multiple partners across product categories.

What the Competitive Gap Means for the Industry

The widening performance gap highlights a broader transformation in the toy business. Success is no longer determined solely by physical products but by the ability to build immersive, cross-platform franchises that generate recurring engagement and high-margin digital revenue.

Hasbro’s gaming-led model illustrates how intellectual property can evolve into an ecosystem spanning tabletop, digital, and live experiences. For Mattel, ongoing investments in content, gaming, and brand revitalization will be critical to closing the gap.

As consumer play patterns continue to shift toward hybrid physical-digital experiences, the strategies these two companies pursue could shape the future direction of the global toy industry for years to come.