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Attention: There is an updated edition available for this report.
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| Countries covered: United States The US toy manufacturing industry includes about 700 companies and has annual revenue of $20 billion. Almost all manufacturing is conducted in overseas factories, primarily in China. Major companies include Mattel, Hasbro, and MGA Entertainment, as well as gaming hardware divisions of Microsoft, Nintendo, and Sony. The industry is highly concentrated: the top 50 companies generate about 75 percent of revenue. The industry includes manufacturers of video game consoles, which are covered in the Electronic Gaming Products industry profile, but does not include companies that produce software for video or computer games, which are covered in the Entertainment and 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 depends on identifying market trends and marketing effectively. Large companies can offer a wide selection of toys, and have scale advantages in purchasing, manufacturing, distributing, selling, and marketing. Small companies compete effectively by specializing in a product segment, or responding faster to market trends. The electronic gaming console industry is capital-intensive. Toy manufacturers face increasing competition from other sources of entertainment for children, including the Internet, television, and other consumer electronics. PRODUCTS, OPERATIONS & TECHNOLOGY Major product segments for toys produced in the US include non-electronic toys (transportation toys and sets); electronic toys and games (video game consoles, excluding ... |
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