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The new genre merges traditional and smart toys in a profitable way.
Skylanders: Spyro's Adventures. Source: Hellokids
Four years ago, game maker Activision Blizzard Inc. gambled on the then nonexistent toys to life or interactive gaming toys genre and launched Skylanders: Spyro's Adventures. The company has since then sold more than $3 billion worth of toys in the Skylanders franchise globally.
The big payoff for the toys to life pioneer is just one sign of the segment's growth potential.
In the NPD Group's Interactive Gaming Toys report, 77 percent of surveyed consumers said IGTs are worth the investment compared with other types of toys or games. Report findings also showed that two-thirds of parents are extremely or very likely to buy a new IGT game or character in the next half-year.
Moreover, NPD reported a 48 percent jump in toys to life sales of software, figures and accessories between March 2013 and March 2015. Analyst Liam Callahan said the growth is primarily from new games.
Lured by such strong figures, other big brands have joined the segment. Disney has launched its Disney Infinity franches and Nintendo has introduced amiibo figures. Warner Bros. is set to launch Lego Dimensions on Sept. 27.
The market remains uncrowded, though. In a new NPD report, 41 percent of owners said they have two or more games at home.
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