Hasbro 2013 Annual Report Download - page 15

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2013. TRANSFORMERS products will be supported by the expected major motion picture release of
TRANSFORMERS: AGE OF EXTINCTION in June 2014. During 2013, MARVEL products, particularly IRON
MAN and THOR products, were supported by the motion picture releases of IRON MAN 3 and THOR: THE
DARK WORLD; and G.I. JOE products were supported by the motion picture release of G.I. JOE:
RETALIATION. In 2014, MARVEL products will be supported by the planned major motion picture releases of
CAPTAIN AMERICA: THE WINTER SOLDIER in April 2014, THE AMAZING SPIDER-MAN 2 in May 2014
and GUARDIANS OF THE GALAXY in August 2014. The STAR WARS brand is expected to be supported by
new television programming, STAR WARS REBELS, developed by Lucasflim in late 2014. In addition to
marketing and developing action figures and accessories for traditional play, the Company also develops and
markets products designed for collectors, which has been a key component of the success of the
TRANSFORMERS, STAR WARS and MARVEL brands.
In July 2013, the Company announced that it had entered into amended agreements related to its MARVEL
and STAR WARS licenses with Disney. The term of the MARVEL agreement was extended through 2020 and
both the MARVEL and STAR WARS agreements include additional guaranteed royalties.
Our games category includes an assortment of well known brands delivered on various platforms, including
action battling, board, off-the-board, digital, trading card and role-playing games. Franchise brands included
MAGIC: THE GATHERING and MONOPOLY, and other major game brands included BATTLESHIP, BOP-IT,
CANDYLAND, CLUE, CONNECT 4, CRANIUM, DUEL MASTERS, ELEFUN & FRIENDS, GAME OF
LIFE, JENGA, OPERATION, RISK, SORRY!, TRIVIAL PURSUIT, TWISTER, and YAHTZEE. In recent
years, we have focused on investing more heavily in fewer initiatives and have centralized our games marketing
and development. We continue to evolve our approach to gaming using consumer insights and offering gaming
experiences relevant to consumer demand for face-to-face, off-the-board and other game play including the
launch of new play patterns such as the introduction of action battling with TRANSFORMERS BOT SHOTS and
ANGRY BIRDS STAR WARS. In 2013, the ANGRY BIRDS STAR WARS product line was extended to
include ANGRY BIRDS TELEPODS which integrates analog and mobile gaming. Furthermore, and as
mentioned above, in July 2013, we acquired a 70% majority stake in Backflip to expand our expertise and
product offerings in the mobile gaming arena. Backflip’s game titles are distributed primarily through the Apple
APP Store and GOOGLE Play Store and include DRAGONVALE, NINJUMP and PAPER TOSS. In 2014 and
beyond, we plan to introduce additional game titles including PLUNDERNAUTS, DWARVEN DEN and NERF
ZOMBIE STRIKE.
In our girls’ category, we seek to provide a traditional and wholesome play experience. Girls’ franchise
brands include LITTLEST PET SHOP, MY LITTLE PONY and NERF REBELLE. Other major girls’ toy brands
include FURREAL FRIENDS, BABY ALIVE, EASY BAKE and FURBY. The LITTLEST PET SHOP and MY
LITTLE PONY brands were supported and will continue to be supported by television programming produced
by Hasbro Studios in 2013 and 2014. These brands are further supported by digital gaming with licensed
partners. The MY LITTLE PONY brand was also re-imagined with the successful launch of MY LITTLE PONY
EQUESTRIA GIRLS product line which was supported by the release of an animated movie in 2013 and an
expected animated movie release in 2014. In 2013, we expanded our NERF brand into the girls’ category with
the introduction of NERF REBELLE, a line of action performance products marketed to girls. We re-introduced
a new FURBY product line in English-speaking markets in 2012 and in certain non-English speaking markets in
2013.
Our preschool category encompasses a range of products for infants and preschoolers in various stages of
development. Franchise brand offerings in the preschool category included PLAY-DOH and TRANSFORMERS.
Other major preschool brands include PLAYSKOOL and products based on the SESAME STREET portfolio of
characters. PLAY-DOH products include modeling compound and playsets. In 2014, we plan to introduce DOH
VINCI, a new line of arts and crafts products. Our PLAYSKOOL brand includes well-known products such as
MR. POTATO HEAD, SIT ‘N SPIN, ROCKTIVITY and GLOWORM, along with a line of infant toys including
STEP START WALK’ N RIDE and ELEFUN BUSY BALL POPPER. Our preschool category also includes
certain MARVEL, STAR WARS and TRANSFORMERS action figures and playsets marketed under
PLAYSKOOL HEROES. Sales in our preschool category also benefit from several educational and interactive
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