As previously discussed in this blog, Hatchimals have been crowned the hit toy for the 2016 Holiday season. But a recent article in Fortune (December 28, 2016) titled “Meet the Hatchimals that Ruined Christmas (For some kids, anyway) describes toys that were dead on arrival and did not hatch as expected. The issue seems to be batteries with a short life but associated customer service waits at the manufacturer were reported to be too long. If true, was the decision to speed up manufacturing, albeit with quality issues, in order to satisfy demand, a profitable decision for the manufacturer, Spin Master industries ?   What could Spin Master and retailers have done to handle the unexpected demand surge given their lack of capacity in December ? Should Spin Master work with customers to repair toys or just replace every defective Hatchimal ?