Games and Toys

The global games and toys industry is highly lucrative and a billion dollar industry and is dominated by players such Namco Bandai, Mattel, Lego, Hasbro and Jakks Pacific. Lego recorded the largest revenue of US$ 5.51 billion in 2016, thus emerging as the largest player in the toys and games industry. Mattel ranked second with a revenue of US$ 5.48 billion in the same year.

North America emerged as the largest market for games and toys followed by Europe in 2016 and is expected to show the same trend throughout the forecast period. U.S alone accounted for a revenue of more than US$ 20 billion in 2015. The contribution of the games and toys industry to the entire economy of the U.S, accounted for US$ 81.22 billion in the same year, while more than 280,000 jobs were formed in this industry in the same year. However, the revenue of the games and toys industry in Western Europe is expected to garner more than US$ 50 billion by the end of 2021. Asia Pacific is projected to be the fastest growing region for games and toys. High population, coupled with rapid urbanization is expected to play a key role in the growth of the games and toys industry. The abolishment of the one child policy in China is expected to augment market growth for games and toys in the country.

The global games and toys industry is fairly competitive with less entry barriers. Traditional toy manufacturers are witnessing an increase in competition from digital gaming products, and digital media. Consumers are price sensitive when it comes to purchasing games and toys which puts in additional pressure on the manufacturers with regards to price competency. This hindrance is tackled by the manufacturers as they outsource their production to China in order to reduce production costs.

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