The impact of Coronavirus (COVID-19) on toys and games has reinforced many trends already shaping the industry pre-COVID-19, mainly in digital transformation. 2020 demonstrates further shift towards hometainment and online education, with surge in video games, including e-sports, and digital education tools, especially STEM. While some traditional toy categories spiked in Q1 2020, there is a long-term trend towards the repositioning of players as entertainment providers on multiple platforms.
This report comes in PPT.
Faced with challenges to supply chains, store closures, and shifts in consumer demand due to depressed incomes and a shift to digital entertainment, traditional toys are expected to see an overall slower performance globally. However, a number of categories that fit in well with the needs of at-home children and adult entertainment and education have seen a surge in early 2020, such as games and puzzles and construction, amongst others.
While the trend towards the digitalisation of playtime and pastime was already taking strong roots pre-COVID-19, a further shift online during COVID-19 stay-at-home mandates has given a further boost to video games, while the shutdown of competitive tournaments and sports has sent more gamers towards virtual e-sport events.
With more consumer engagement through digital tools – for both entertainment and education – the industry challenge for traditional toy makers is to ensure their presence across platforms. In the world of video games, hardware and software developers will see more competitive pressures as consumers are increasingly spoiled for choice.
As toy makers in traditional space increasingly reposition themselves as entertainment providers rather than toy makers, mid- to long-term opportunities and challenges include the need to build expertise and operate across multiple platforms. Investment in technology and video games as well as more mergers and acquisitions activities are expected to be strongly on the traditional toy industry agenda.
This is the aggregation of traditional toys and games and video games.
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