Hasbro’s net earnings (income minus outflow) for the 4th quarter of 2008 were significantly down at $93.6 million, but only slightly down over the course of the entire year. A lot of the loss was simply due to foreign currency conversion. Revenues (income only) were actually up for the year, including trading cards and board games (Scrabble, Guess Who, Twister, Pictureka). (source)

Mattel’s 4th quarter net earnings of $176.4 million is down significantly more (46%), despite getting hit with toy recalls in the previous year. Barbie hasn’t been performing as well as expected: Mattel won a lawsuit against the makers of Bratz, which only led to the Bratz dolls being dumped on the market at low prices and undercutting Barbie sales. (source)

Two major competitors Jakks Pacific (Disney, Hannah Montana, Care Bears, Pokemon (dolls), NASCAR, etc) and Leapfrog Enterprises are expected to report no better later this month. And Jakks is in the middle of its own half a million toy recall. (source)