Now We Know Why Hasbro Was Doing Backflips

Now We Know Why Hasbro Was Doing Backflips

Hasbro's $112 million deal for a majority stake in small yet profitable mobile games developer Backflip Studios became clearer after the country's second-largest toy maker posted disappointing quarterly results.

Hasbro's 35% drop in toys for boys may explain why it's expanding its licensing deal with Disney for more Marvel and Star Wars playthings, but it also helps explain the push for digital downloads. Kids are moving away from traditional toys, and if that wasn't evident when Mattel posted a 12% drop in Barbie sales last week, it is now.

In this video, longtime Fool contributor Rick Munarriz discusses the mad scramble to gain dot-com relevance with young and potentially jaded gamers.

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Longtime Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends Hasbro, Mattel, and Walt Disney. The Motley Fool owns shares of Hasbro and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Originally published