Hasbro’s Winning Hand: How Magic: The Gathering is Outpacing Mattel

The toy industry has long been a battleground for dominance between Hasbro and Mattel, vying for lucrative licenses and shelf space. However, a significant shift is underway, with Hasbro gaining ground thanks to the unexpected strength of its Wizards of the Coast division, particularly the trading card game Magic: The Gathering. While Mattel grapples with stagnating revenue, Hasbro is attracting investor confidence, fueled by a strategic focus on gaming and digital experiences.

Hasbro’s Revenue Gains and Mattel’s Challenges

For the fiscal year 2025, Hasbro reported revenue gains of 14%, reaching $4.7 billion , while Mattel saw a 1% decrease in net sales, totaling $5.3 billion . Despite Mattel’s larger overall revenue, its growth has stalled. According to Eric Handler, managing director and senior research analyst at Roth Capital Partners, Mattel’s revenue has remained “in a very tight range for five years now, and 2026, on an organic basis, is the same.”

This disparity is reflected in stock performance. Mattel shares have fallen by over 20% in the last 12 months, trading around $17, while Hasbro’s stock has risen approximately 46% over the same period, reaching around $100 .

The Rise of Wizards of the Coast and Magic: The Gathering

Hasbro’s success is largely attributed to its Wizards of the Coast division, which encompasses Dungeons & Dragons, Magic: The Gathering, and a growing portfolio of digital and video games. In 2025, Wizards’ revenue grew by 45% to $2.1 billion , representing 88% of Hasbro’s adjusted profits .

Magic: The Gathering, created in 1993, has expanded beyond its original lore through collaborations with popular franchises like “Avatar: The Last Airbender,” Marvel’s “Spider-Man,” and “Lord of the Rings.” The 2025 release of a “Final Fantasy” set became the fastest-selling expansion pack in the game’s history, generating $200 million in sales in a single day . More than 1 million unique players participated in organized play in 2025, a 22% year-over-year increase , and the Wizards Play Network, which hosts events, grew to over 10,000 locations, a 20% increase from 2024 .

Hasbro plans to launch new Magic: The Gathering sets based on “The Hobbit,” “Teenage Mutant Ninja Turtles,” and “Star Trek” in 2026 .

Digital Expansion and Licensing Agreements

Hasbro’s digital gaming division also experienced a 6% revenue increase in 2025, driven by the success of “Monopoly Go!” The company has launched new games and an in-person video game studio in Montreal to further expand its digital presence.

Disney and Hasbro extended their long-term collaboration, allowing Hasbro to continue creating toys and games based on Star Wars and Marvel . This includes lines like The Black Series and The Vintage Collection for Star Wars, and Marvel Legends action figures. Hasbro also maintains a licensing agreement with Disney to integrate Marvel characters into Magic: The Gathering .

Mattel’s Digital Push and Industry Trends

Mattel is responding to these shifts by investing in its own digital unit, acquiring full ownership of the Mattel163 joint venture, which develops digital games based on its brands . However, analysts suggest Mattel is still in the early stages of this investment, comparable to Hasbro’s gaming investment seven years ago.

Despite challenges with brands like Barbie and Fisher-Price, the overall toy industry saw a 6% increase in U.S. Dollar sales in 2025, with unit sales increasing by 3% . Upcoming theatrical releases, including Mattel’s “Masters of the Universe” and “Matchbox,” and Hasbro’s lines for “The Mandalorian and Grogu,” “Spider-Man: Brand New Day,” and “Avengers: Doomsday,” are expected to provide further boosts. The collaborative product line for Netflix’s “KPop Demon Hunters” is also anticipated to be a significant success for both companies .