Barbie and Hot Wheels owner Mattel launches Mattel Game Studios
Toy giant Mattel has established Mattel Game Studios, a new subsidiary of its broader digital games division, to develop, publish, and operate video games based on its iconic brand portfolio including Barbie and Hot Wheels. The studio consolidates approximately 300 video game workers operating across Los Angeles and Hangzhou.
Rather than pursuing traditional console or PC gaming, Mattel Game Studios is strategically focused on mobile free-to-play titles and user-generated content platforms. The studio will oversee Mattel’s existing mobile portfolio while publishing new free-to-play smartphone experiences and creating original interactive content for platforms such as Roblox and Fortnite—notably absent from this strategy are Steam and traditional gaming consoles.
The initiative builds on Mattel163, a joint venture with Chinese tech company NetEase founded in 2019. Mattel took full operational control of this venture earlier in 2026, effectively consolidating its operations into the new studio structure.
This launch reflects Mattel’s strategic pivot toward where younger audiences increasingly spend time and money: mobile gaming and social platforms rather than traditional gaming hardware ecosystems. The emphasis on free-to-play models and user-generated content platforms signals a broader industry trend of established entertainment companies seeking revenue streams in digital spaces that bypass traditional gaming distribution channels.