The competitive landscape between toy manufacturers Hasbro and Mattel is becoming more pronounced, particularly due to the success of Hasbro’s trading card game, Magic: The Gathering. Over the decades, both companies have vied for key licenses, featuring popular franchises like Disney and Star Wars. As the toy industry recovers from downturns in sales, Hasbro is currently experiencing significant financial gains. In fiscal year 2025, Hasbro reported a 14% revenue increase to $4.7 billion, while Mattel’s net sales dipped 1% to $5.3 billion. Despite larger total revenues, Mattel has struggled with stagnant growth over the past five years, according to industry experts.
Hasbro’s stock has risen about 46% in the past year, in contrast with Mattel’s decline of over 20%. Challenges for Hasbro include the divesture of its film and TV business and impacts from recent labor strikes in Hollywood; however, CEO Chris Cocks expressed optimism about the company’s growth trajectory.
A notable growth area for Hasbro is its Wizards of the Coast division, which includes Dungeons & Dragons and Magic: The Gathering. In 2025, Wizards’ revenue surged 45% to $2.1 billion, benefiting from limited-edition card sets that appeal to a wide customer base. Hasbro has utilized partnerships to launch themed expansions that have drawn new players, emphasizing the brand’s expansion potential.
Meanwhile, Mattel is venturing into the digital gaming arena, acquiring full ownership of its joint venture with NetEase. This move is seen as a necessary step as traditional toy segments face declines, particularly in brands like Barbie. Despite these challenges, there are signs of recovery in industry-wide sales, providing both companies with a potential boost in the near future.
Why this story matters:
- Highlights the shifting dynamics in the toy industry, particularly between two major companies.
Key takeaway:
- Hasbro is leveraging its gaming franchises to drive revenue growth, while Mattel seeks to enter the digital game market.
Opposing viewpoint:
- Mattel’s stagnant growth underscores the challenges it faces against a more agile Hasbro, despite its strong brand portfolio.
