Mattel to Acquire NetEase's Stake in Mattel163 Joint Venture

Why It Matters

Hasbro’s trading‑card engine is delivering outsized profit growth, positioning the company ahead of Mattel as the toy market pivots toward digital and experience‑driven products. The divergence signals a strategic inflection point for legacy toy makers seeking sustainable earnings.

Key Takeaways

• Hasbro revenue up 14% to $4.7B FY2025.
• Magic drives 88% of Hasbro's adjusted profit.
• Mattel sales fell 1% to $5.3B, shares down 20%.
• Wizards digital games revenue rose 6% in 2025.
• Mattel now fully owns Mattel163, targeting mobile game growth.

Pulse Analysis

Hasbro’s resurgence rests on a decades‑old trading‑card franchise that has been reinvented for a multigenerational audience. Magic: The Gathering’s 45% revenue jump to $2.1 billion, fueled by high‑value limited editions and cross‑IP collaborations, now underpins almost nine‑tenths of the company’s adjusted earnings. By expanding organized play, growing its network of 10,000+ partner stores, and launching blockbuster sets tied to pop‑culture properties, Hasbro has turned a niche hobby into a core profit engine, offsetting weaker performance in traditional toy lines.

The digital frontier further amplifies Hasbro’s advantage. A 6% rise in digital and video‑game revenues, highlighted by Monopoly Go! and a new Montreal studio, reflects a broader consumer shift toward online play. While Mattel is attempting to catch up—securing full ownership of its Mattel163 venture and betting on mobile adaptations of Uno, Phase 10 and other IPs—its legacy segments such as dolls and infant toys continue to contract. The contrast illustrates how strategic timing and ecosystem development can translate hobbyist enthusiasm into scalable digital revenue streams.

Industry‑wide, the U.S. toy market posted a 6% sales increase in 2025, showing resilience despite demographic headwinds. Hasbro’s hybrid model of high‑margin collectible cards and expanding digital experiences offers a template for growth in a market where unit sales remain stable but price sensitivity rises. As both companies line up new licensed sets—from "The Hobbit" to "Star Trekk"—the ability to monetize fandom across physical, digital and media channels will likely dictate market leadership in the coming years.

Deal Summary

Mattel announced it will buy out NetEase's 50% stake in the Mattel163 joint venture, gaining full ownership of the digital gaming business that includes titles such as Uno, Uno Wonder, Phase 10, and Skip‑Bo. The terms of the transaction were not disclosed. The move follows Mattel's push into digital gaming to offset declines in its traditional toy segments.