Mattel is bringing one of its primary game development arms in-house.
Mattel formed the mobile game studio Mattel163 as a joint venture with NetEase in 2018, with each partner owning a 50 percent stake of the company. Today, February 10, Mattel announced an agreement with NetEase to acquire full ownership of the studio, with plans to close the transaction by the end of the first quarter of 2026. The transaction values Mattel163 at $318 million, with Mattel funding over half of the acquisition with its share of cash from the joint venture. A NetEase representative did not respond to a request for comment prior to the publication of this article.
So far, Mattel163 has published four games, all inspired by Mattel’s tabletop gaming properties: “UNO!,” “Phase 10,” “Skip-Bo” and “UNO Wonder.” Mattel’s decision to acquire the studio reflects the success of these titles, which collectively boast a community of over 550 million players, according to numbers announced by Mattel last month.
“The business has said we would look at M&A opportunities that were both obvious and accretive, and it doesn’t get more obvious than a studio that is only developing Mattel IP,” said Mattel head of digital Marcus Liassides in an interview with GamesBeat.
Mattel’s acquisition of full ownership of Mattel163 is part of the company’s broader push into gaming and digital properties that has been ongoing since 2024, when Mattel launched a self-publishing initiative intended to fund the development and marketing of Mattel-inspired games created by third-party developers.
Mattel is also actively licensing out intellectual properties like Barbie, allowing them to show up inside third-party games like Outfit7’s “My Talking Angela 2.” Mattel’s digital strategy currently focuses on three core pillars: licensing with partners like Take-Two Interactive, Xbox, Supercell, Netflix and Apple Arcade, self-publishing of original mobile games — with plans to launch two new titles in 2026 — and expanding on creator platforms like Roblox and Fortnite.
“We’re not backing off any of the plans that we’ve already got in place. We’re continuing to invest at the pace that we have always planned to,” Liassides said. “Mattel163 accelerates that. The team has been fantastic in scaling that business; they also have a pipeline of games that we’re supporting to bring to market. So, it’s a one-and-one-equals-three type situation. Nothing’s changing from our strategy — we’re just accelerating and amplifying it.”
Moving forward, NetEase will continue to support Mattel163 during a transition period, with Mattel eventually planning to move the business entirely outside the NetEase ecosystem, according to Liassides, who framed this shift as a natural evolution for the business.
“We are excited to welcome the talented team at Mattel163 after the deal closes,” said Mattel executive vice president and chief strategy officer Ken Wee in a statement emailed to GamesBeat. “This move accelerates our broader digital games strategy, as well as Mattel’s overall shift to an IP and brand management company. By aligning Mattel163 more closely with our brand and publishing teams, we will create a more robust pipeline that supports long-term growth.”