Mattel, Inc. MAT focuses on technological advancements to create innovative products that are beloved by families. To this end, the company unveiled Pictionary Vs. AI. This marks the company’s first board game to integrate AI technology.
Staged for the age group of 8 years and above, the quickdraw gameplay is based on the concept of ‘Human Sketches, AI Guesses.’ The game can be accessed through a mobile device (by scanning a QR code). It then allows the AI to use a mobile device’s camera to see the board and make guesses.
The app also features challenge rounds wherein players must sketch without using their hands and with their eyes closed. The company uses Google’s Quick, Draw! artificial intelligence network to guess the player’s drawings.
The company is optimistic about the product launch, given the emphasis on technological advancements (to create new play patterns and drive consumer engagement). It stated plans to make it available globally beginning Oct 2, 2023.
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Shares of Mattel have gained 19% year to date against the industry’s 15.5% growth. The company benefits from product portfolio expansion strategies across its key brands, Optimizing for Growth program and solid demand for Hot Wheels. Also, initiatives to capture the total value of its IPs and transform itself into a high-performing toy company bode well.
MAT continues to expand its franchise brands with the inauguration of creative products like Hot Wheels Racerverse, a new character-driven play system. Also, the upcoming introduction of the digital game Hot Wheels Unleashed 2: Turbocharge in fall 2023 will further expand Mattel’s portfolio. Nonetheless, earning estimates for 2023 have increased in the past 60 days, which reflects analysts’ optimism about the company’s growth prospects.
Zacks Rank & Other Key Picks
Mattel carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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