Hasbro vs Mattel: How Magic: The Gathering Fuels Growth in a Changing Toy Industry
The competitive landscape of the toy industry is shifting, with a widening gap emerging between Hasbro and Mattel. While both companies have historically vied for dominance, fueled by coveted licenses for popular franchises, Hasbro is currently demonstrating stronger financial performance, largely due to the success of its Wizards of the Coast division.
Hasbro’s Ascendancy
For decades, Hasbro and Mattel have alternated in leading the toy market, competing for licenses to produce toys based on franchises like Disney princesses and “Star Wars.” However, as the industry rebounds, Hasbro is gaining favour with investors. In the fiscal year 2025, Hasbro reported revenue gains of 14%, reaching $4.7 billion, while Mattel experienced a 1% decrease in net sales, totaling $5.3 billion.
Despite Mattel’s larger overall revenue, its growth has stagnated. According to Eric Handler, managing director and senior research analyst at Roth Capital Partners, “[Mattel’s] revenue has been in a very tight range for five years now and 2026, on an organic basis, is the same.” This stagnation is reflected in the stock market, with Mattel shares down over 20% in the last 12 months, trading around $17, while Hasbro’s stock has risen approximately 46% to around $100 over the same period.
Navigating Challenges
Hasbro’s recent success hasn’t been without obstacles. The company’s revenue was impacted by the divestiture of its film and TV business, eOne. The entertainment segment, reliant on film and TV licenses, was negatively affected by the 2023 Hollywood labour strikes. Nevertheless, Hasbro CEO Chris Cocks stated, “Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way.”
The Power of Wizards of the Coast
A key driver of Hasbro’s growth is its Wizards of the Coast division, which includes Dungeons & Dragons, Magic: The Gathering, and related digital and video games. In 2025, Wizards’ revenue grew by 45% to $2.1 billion, fueled by sales of sets tied to Magic’s Universe Beyond and limited-edition Secret Lair packs, some selling for nearly $200. This segment accounts for 88% of Hasbro’s adjusted profits, despite representing less than half of the company’s total revenue.
Magic: The Gathering, launched in 1993, involves players dueling with custom decks of collectible cards. Hasbro has expanded the game’s universe in recent years, releasing sets based on intellectual property from franchises like “Avatar: The Last Airbender,” Marvel’s “Spider-Man,” and “Lord of the Rings.” A “Final Fantasy” set released in mid-2025 generated $200 million in sales in a single day, becoming the fastest-selling expansion pack in the game’s history.
Expanding Digital Reach
Hasbro’s Wizards unit also includes a growing digital and licensed gaming space, with revenues increasing 6% in 2025, driven by the success of “Monopoly Go!”. The company is investing in online gaming and has established a video game studio in Montreal. Meanwhile, Mattel is also entering the digital space, announcing plans to acquire full ownership of its Mattel163 joint venture, which develops mobile games based on Mattel brands like Uno and Skip-Bo.
Industry Trends and Future Outlook
Mattel’s digital push coincides with challenges in its core brands. Sales of Barbie and Fisher-Price have been declining, partially offset by growth in the Hot Wheels division. However, overall U.S. Toy sales increased 6% in 2025, with unit sales rising 3%, indicating consumer demand remains resilient.
Both companies are poised to benefit from upcoming theatrical releases. Mattel has “Masters of the Universe” and “Matchbox” slated for release in 2026, while Hasbro will launch toy lines for “The Mandalorian and Grogu,” “Spider-Man: Brand New Day,” and “Avengers: Doomsday.” A collaborative product line for Netflix’s “KPop Demon Hunters” is also anticipated to be successful.
Frequently Asked Questions
What is driving Hasbro’s recent growth?
Hasbro’s growth is primarily driven by the success of its Wizards of the Coast division, particularly the Magic: The Gathering trading card game and its expanding digital gaming portfolio.
How is Mattel responding to the changing market?
Mattel is investing in its digital gaming division by acquiring full ownership of Mattel163 and is relying on upcoming theatrical releases of its brands to boost sales.
What is the outlook for the toy industry as a whole?
The toy industry is showing signs of recovery, with overall sales and unit sales increasing in 2025, suggesting continued consumer demand despite economic fluctuations.
As both companies navigate a dynamic market, will the strategic focus on gaming and digital platforms prove to be the key to sustained success in the evolving toy industry?