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A developing market for InvenSense: Toys +2

10:05 09-Jul-15


Disney has just begun demonstrating its Playmation toys nationwide.  For those who don't know, these wearable toys use motion sensors and bluetooth to enhance play as kids run around using them.  Revenue on the products is projected to reach $500M, possibly expanding to double that as the line expands from the Avengers brand to Star Wars (light sabers anyone?) and beyond, which brings us to my point:

I think there's a decent chance InvenSense will be in this product line, given its software and development ease.  However, $500M / $120 for the starter kit (which presumably is more expensive than add-on products) gives us a number of units in the mid-single digit millions.  That makes this opportunity approximately equal to a minor smart-phone launch; so the Disney-specific revenue would be incremental for InvenSense at best. 

Anecdotal checks indicate that Playmation doesn't have much traction with the target audience now, but it hasn't even been released yet.  There's no doubt Disney is serious about pushing the product line, even having gone so far as to combine its consumer products and interactive units.  Knock-off products from other companies could provide additional revenue, so I see the real significance here being the continued expansion of sensors into new areas of life.