Now We Know Why Hasbro Was Doing Backflips

Hasbro's (NASDAQ: HAS  ) $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 (NYSE: DIS  ) 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 (NASDAQ: MAT  ) 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.

Toys may not be hot, but these retailers are doing just fine
The retail space is in the midst of the biggest paradigm shift since mail order took off at the turn of last century. Only those most forward-looking and capable companies will survive, and they'll handsomely reward those investors who understand the landscape. You can read about the 3 Companies Ready to Rule Retail in The Motley Fool's special report. Uncovering these top picks is free today; just click here to read more.

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Related Tickers

9/29/2016 4:00 PM
HAS $79.39 Down -0.22 -0.28%
Hasbro CAPS Rating: ****
DIS $91.80 Down -0.40 -0.43%
Walt Disney CAPS Rating: *****
MAT $30.77 Down -0.28 -0.90%
Mattel CAPS Rating: ****