Rise of the Smart Toys Market

Mobile, digital entertainment has increasingly been on the rise with the proliferation of smartphone devices and tablets, higher quality graphics and gaming content in the app stores -- and this is of little to no surprise in the gaming industry. Yet, there has been a recent and increasing return of consumers to physical toys and games with the rising interest and availability of 3D printing.

Overall, Gartner Research projects the global 3D printing market to grow rapidly from $1.6 billion in 2015 to $13.4 billion in 2018, across a variety of verticals such as automotive, medical devices, aerospace, high tech and retail (including toys and games). This is in large part due to advancements in printers and printing methods, the growing variety of materials used for printing, and increasing interest from companies experimenting with rapid prototyping. In the global marketplace, we anticipated 3D printed games and toys to become a billion dollar market, and we see that North America and Western Europe are the biggest adopters to date by order volume and spend, and our audiences range across all ages.

As a category, 3D printed collectibles are increasingly gaining traction in the gaming market as well. Store-bought action figures, which have already been a billion dollar industry for years, are now being served by the 3D printing industry for on-demand in-app ordering and customization. Core gaming fans to casual, mainstream players alike are purchasing action figures from a wide spectrum of games like "World of Warcraft" and "Minecraft" to "Super Mario", "Pokemon" and the multi-billion dollar “Skylanders” franchise. Additionally, players can now 3D print anything that they may dream with endless possibilities of what they can create within the environment of a game. Or, players can customize in-app items like trophies with high scores. Given this new found freedom of 3D printing, we see that the market adoption is increasing.

Lionel RAYNAUD, Vice President, Creative at Ubisoft Montreal, said, "For us, the player freedom to express himself and personalize his game is more than ever at the heart of our experiences. Each player's character should feel unique and reflect the player's path in the game, making it an even more desirable object."

An interesting and new shift is now occurring with 3D printing - players are becoming more interested in connecting their digital and physical experiences and content. It's less about whether it's physical or digital play experiences, the shift is towards immersing in an entertaining experience, and it's all one world. What are we talking about? Interactive Gaming Toys. Smart Toys to Life. Phygital Toys (physical-digital). Any way you describe it, more households are adopting gaming experiences that bridge the physical and digital gap.

[Video: Phygitoys demonstration]

According to The NPD Group, 70% of parents in the U.S. are familiar with interactive gaming with 40% stating that they own at least one franchise in the home. Surveyed households spent an average of $131 on interactive games and characters in the last 6 months from brands like Activision's Skylanders, Disney Infinity, and Nintendo amiibo. These families also expressed that they expected to purchase more interactive games and characters in the next 6 months as well. Additionally, The NPD Group recently revealed that Nintendo has sold 7 million of its Amiibo toys-to-life figures to date.

So, what is holding the interactive gaming market from being a hundred-billion dollar market today? While the big players Activision, Disney and Nintendo continue to prove the consumer market interest for smart toys that engage players, small-to-medium sized studios haven't yet made the leap. Concerns of technology complexity (authentication and interaction) as well as lead time for development, complexity of the ecosystem, distribution and production tend to be the key issues. Additionally, cost has been an issue of concern - Disney's Infinity reportedly cost more than $100 million to develop - but 3D printing is now minimizing this risk. The increasing availability of higher production on-demand printing and the range of printing materials has all but evaporated this concern. For instance, FabZat uses sandstone for 3D printing high quality, full-color game figures, which is less costly and more durable than other materials. Prices start at $20 and every single sale creates revenue for the developer, from the first item sold.  

The financials are clearly in favor for 3D printed action figures and interactive gaming toys. With NPD Group's average spend estimates of up to $131, and our data showing that households typically purchase up to 2 figures per order, we believe game developers should seriously consider interactive gaming for their next title. Not only does 3D printing provide an additional revenue stream with higher purchase price than the average in-app virtual good, players also tend to engage and increase loyalty to games when they've collected 3D printed figures.

The future of interactive entertainment is upon us, and the possibilities for experiences created by 3D printing are truly endless for both the players and for game developers. Now is the time to be thinking about your next game and how 3D printing can transform both your revenue model and the experience you create for today's gamers.