Toy & Game Manufacturing

Toy & Game Manufacturing - Brief Excerpt from Industry Overview Chapter:

Companies in this industry manufacture electronic and nonelectronic toys and games. Major companies include Mattel, Hasbro, MGA Entertainment (all based in the US), Namco Bandai (Japan), LEGO (Denmark), Steiff (Germany), and Sanrio (Japan), as well as the gaming hardware divisions of Microsoft, Nintendo, and Sony.

Global toy sales total about $85 billion, according to the NPD Group. Major markets include the US, the UK, France, Germany, and Australia. China is the world's largest manufacturer and producer of games and toys.

The US toy and game manufacturing industry includes about 700 companies and has annual revenue of about $2 billion and is expected to have a high-growth rate in the next two years. Revenue from toy manufacturing that takes place in the US represents only a small portion of revenue recorded by US-based manufacturers, which commonly arrange to have toys produced at factories in countries where costs are lower. Key growth drivers for the industry include product innovations and increases in personal income.

The industry includes manufacturers of video game consoles, which are covered in the Electronic Toys & Games Manufacturing industry profile, but does not include companies that produce software for video or computer games, which are covered in the Entertainment & Games Software industry profile.

COMPETITIVE LANDSCAPE

Growth in the population of children age 12 and younger drives demand for toys; demand for electronic gaming products is driven by personal income and product innovation. The profitability of individual companies...