Hasbro, Inc. (HAS)’s Renaissance

Gamers

On the electronic gaming front, Hasbro’s Goldner very politely said that the company has only begun to penetrate this market. The truth is that the company’s earlier attempts to translate the success of its board games over into tablet applications has fallen flat. In fact, according to Jim Silver, editor in chief of timetoplaymag.com cited in The Wall Street Journal, 90% of all toy applications failed in 2012. Mattel’s Barbie and Hot Wheel apps were flops, also.

Hasbro and Mattel should ask LeapFrog Enterprises, Inc. (NYSE:LF) what it is doing so right. LeapFrog continues to score with its Kids tablets, which were among the top 10 hottest selling items during the 2012 holiday season. The success was driven by sales of the Leap Pad Explorer and Leap Pad2, in addition to Leapster Explorer software, according to the NPD Group.

In 2012, LeapFrog’s net sales increased 28% over year ago levels to $581.3 million. Net income for the full year was $86.5 million compared with $19.9 million in 2011. In 2013, when the company intends to launch new applications for the iPhone and iPad in addition to the latest LeapPad tablets, LeapFrog projects a 10% increase in net sales despite a backdrop of slow global economic growth.

As the Toy Industry Associations 2013 American International Toy Fair gets underway in New York City this week, Hasbro is preparing to unveil Transformers Beast Hunters, which is a reinvention of the classic toy for boys, in addition to a nerf ball for girls. The competition is stiff as major brands, including Disney, attempt to capitalize on the momentum for dolls and video games.

The article Hasbro’s Renaissance originally appeared on Fool.com and is written by Gerelyn Terzo.

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