With the world plugging into the Internet, toys are under pressure. Kids are swapping plastic play for screen-based entertainment and both Mattel and Hasbro need to adapt. The question is: how?

Mattel’s also finding out the hard way that Barbie’s reign as the queen of dolls is no longer secure. Challengers to her throne are emerging and the first strike against the dream doll comes not from Hasbro, but from within its own offices.

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