The rivalry between toy giants Hasbro and Mattel intensifies, with Hasbro winning over Wall Street in fiscal year 2025. Hasbro’s revenue increased by 14% to $4.7 billion, while Mattel saw a 1% drop to $5.3 billion. Mattel’s revenue has been stagnant for five years, with shares down over 20%.
Wizards of the Coast, a division of Hasbro, experienced significant growth in 2025, with revenue increasing by 45% to $2.1 billion. Sales were driven by sets tied to Magic: The Gathering and limited-edition Secret Lair packs. Magic sets based on popular franchises like “Avatar: The Last Airbender” and “Final Fantasy” have been successful.
Magic: The Gathering has seen a surge in popularity, with over 1 million unique players participating in organized play by the end of 2025. The game has attracted players from various fanbases, contributing to its multigenerational appeal. Hasbro plans to launch new Magic sets based on “The Hobbit,” “Teenage Mutant Ninja Turtles,” and “Star Trek” in 2026.
Hasbro’s digital and licensed gaming division saw revenues grow by 6% in 2025, driven by the success of “Monopoly Go!” The company has invested in online gaming and launched new games to cater to modern consumers. In contrast, Mattel is just beginning to establish its digital unit, recently acquiring full ownership of Mattel163 to develop digital games based on its brands.
Mattel’s move into digital gaming coincides with declining sales of flagship brands like Barbie and Fisher-Price. Analysts believe Mattel’s investment in gaming could boost profit margins over time, but it may not directly compete with Hasbro in the gaming sector. The industry is evolving as companies adapt to changing consumer preferences and technological advancements. Hot Wheels has been a bright spot for Mattel, with the vehicles division seeing an 11% increase in gross billings in 2025. However, the dolls segment fell 7% and the infant, toddler, and preschool space slipped 17%.
Despite the challenges, there is hope for Mattel and the toy industry. Total annual dollar sales were up 6% in the U.S. in 2025, with unit sales increasing by 3%.
Mattel and Hasbro are expected to benefit from a strong theatrical calendar in 2025. Mattel has two brands hitting the big screen, “Masters of the Universe” in June and “Matchbox” in October.
In addition to their theatrical releases, Mattel holds the master toy licenses for “Toy Story” and Disney princesses, while Hasbro will have toy lines for popular franchises like “The Mandalorian” and “Spider-Man.”
Mattel and Hasbro have also collaborated on a product line for Netflix’s hit animated film “KPop Demon Hunters,” which is expected to be a big success for both companies.
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2. The unemployment rate fell to 5.4%, its lowest level since the start of the pandemic, as more Americans returned to work.
3. Average hourly earnings increased by 4% over the past year, reflecting a tightening labor market and rising wages for workers.: Toy industry pressures make digital the star