Hasbro

in 2024

$15.6b

in 2033

$71.87b

compound annual growth rate (CAGR), 2024 to 2033

18.6%

How Gen Alpha plays

• Personalized play

  Gen Alpha wants individualized play that reflects their identity and adapts to their preferences.

• Education incorporated

  Toys that blend fun and learning, like STEM kits, DIY activities, and educational games, appeal to Gen Alpha.

• Digital-first preferences

  Very engaged with digital entertainment. Toys tied to popular characters are received well, but interest fades quickly.

• Interactive and social

  Games with avatar customization and social elements are favored, with strong interest in storytelling and exploration.

• Combined elements

  Crossover physical-digital toys that combine entertainment, education, and personalization are generally received well.

• Social media and influencers

  Social media has changed how kids discover toys; toys promoted by influencers on popular platforms are very popular with Gen Alpha.

What development research says about digital play

• Cognitive impact

  Constant digital stimulation dulls the frontal lobe, leading to impatience, poor impulse control, and craving instant feedback.

• Emotional implications

  Digital toys may replace real friendships, creating a “domination model” where kids control without accountability.

• Social advantages

  Games with prosocial content could decrease antisocial thoughts, encourage tolerance, and reduce aggression.

In their words

• “I like playing with farm animals and animals from the Savannah because I really like animal noises.”

• “I like to sketch or draw because it sparks creativity, and I like that.”

• “I like videogames because they tell a good and long story while still being engaging because you have a goal of winning.”

• “I like to play tennis and hangout with my friends.”

• “I prefer playing with friends, they're good at games and it's fun to spend time with my friends.”

• “I like playing more with my tablet but I like playing with my dolls too. I always wanted to have a tablet so I use that more.”

• “I like to play with both it just depends on what game I play. I like to play by myself because sometimes I like to be by myself but most of the time I like to play with friends or family cause it is really funny and cool.”

Parent attitudes toward tech-enabled toys

• Tech vs. traditional

  Parents credit tech toys with promoting tech awareness, creativity, and education, but find traditional toys more stimulating overall, boosting social interaction, reading habits, hand-eye coordination, and outdoor play.

• Concerns

  Sedentary lifestyle risks top the list: obesity, eye strain, social isolation, and weakened communication skills. Tech toys demand stricter supervision due to health and developmental concerns.

• What parents weigh

  Price and budget, age recommendations, educational benefits, safety features and parental controls, and durability and boundary setting.

• Mindset

  Cautiously optimistic but significantly skeptical. Parents demand strong privacy protections and clear educational benefits, and want tech toys to supplement, not replace, traditional social play.

Behavioral shifts in play & parent–child interaction

Visual/spatial orientation

19%

Sensory development

17%

Emotional growth

15%

Motor skills

6%

Parent–child communication during play is crucial for language development. Toys help parents engage with their kids, but digital technology can reduce interaction, harming vocalization and conversational skills.

From the parent survey

of parents very familiar with AI/AR/VR toys aren’t concerned about screen time

75%

of parents familiar with Hasbro consider creativity a top priority in toy selection

82.5%

of parents familiar with Hasbro prioritize educational value in toys

79.4%

of Hasbro-familiar parents value toys that are entertaining

72.2%

Familiarity reduces fear: education and exposure help reduce parental apprehension. And brand isn’t everything: despite Hasbro’s recognition, fewer parents chose parent recommendations, technological features, affordability, or brand recognition as key drivers.

Perception of AI and play, by parent age

of ages 18–26 and 59–77 have a neutral-positive perception of AI and play

75%

of ages 27–42 have a neutral-positive perception of AI and play

47%

Older age groups might need more reassurance for AI in toys.

Budgets and priorities

• Low-cost toys (<$25)→Prioritize entertainment
• Mid-range toys ($26–$50)→Prioritize creativity
• High-cost toys ($51–$100+)→Prioritize parental recommendations & technology

Parents who spend more on toys ($51–$100) are more likely to have positive or open-minded perceptions of AI, making them the ideal early adopters. Hasbro can tailor marketing and features by price tier.

Market and consumer readiness

growth expected from 2024–2030 in the US entertainment robot market

43.3%

global AI robotics market by 2034, at a 21.9% CAGR

$124.26B

of younger parents (18–26) have neutral to positive views on AI, and lower screen time concern

75%

Hasbro is already a leader in robotic toys, with strong brand recognition and a competitive advantage in IP, storytelling, and physical toy design.

Toy concepts

Six concepts from our ideation, three robotic and three creative:

• NERF Battle Bots (robotic)

  High-energy robots for kids who crave action and strategy: they shoot foam darts, navigate obstacles, and team up into battle squads, with customizable looks and performance.

• Paw Pal (robotic)

  A robot companion modeled on a cat, dog, or creature that mimics its behaviors, teaching responsibility and offering companionship to families who can’t keep a real pet. Combines physical play with adaptive AI.

• Lingo Buddy (robotic)

  An interactive robot doll that transforms between a friendly character and a learning device, teaching new languages through play, stories, and conversation.

• Escape to the Sketch (creative)

  A Play-Doh addition: kids build shapes, people, and storylines, then scan them into an app that uses AI to bring their stories to life, with room for collectible kits, new story arcs, and mini games.

• RePuzzle (creative)

  Personalized puzzles and cubes with mini screens that let kids upload and solve their own photos, with a built-in timer, a multiplayer app, and a global leaderboard.

• Quantum Arena (creative)

  Action figures that can be played physically or scanned into a digital space with racing, story, and educational games, plus opportunities to collect, compete, and socialize.