Why Some Videogame Characters Get Toys, and Others Don’t

Contrary to conventional wisdom, games aren’t entirely a hits-driven business. Innumerable games, particularly on mobile and online, do just fine for themselves by attracting and catering to small, passionate audiences. But if you want to see that favorite game character cross over into the real world, maybe in the form of a toy or stuffed animal? Yeah, you’re gonna need a bigger hit.

That’s the word from Damon Lau, CEO of toy company Round 5. And he should know — Round 5 manufactures merchandise for Cut the Rope, the popular physics puzzler series that started on iOS three years ago. Lau can’t disclose just how much Cut the Rope makes in toy land (other than to say it does “very, very well,” and surpassed retailers’ expectations), but he has some keen insights on the lopsided world of game licensing.