By Nicole Maestri

Wal-Mart Stores Inc on Monday announced its second round of price cuts on toys as the world's biggest retailer backs up its intention to be the "price leader" this holiday shopping season.

LONDON (Reuters Life!) - Variations of classic toys like Monopoly and Lego are likely to be best sellers in Britain this Christmas, as cost-conscious parents seek out trusted brands, an industry body predicted on Wednesday.

Hasbro Inc, the nation's second biggest toymaker, said Monday its profit rose 8.8 percent in the third quarter, helped by lower costs and slightly higher sales of Transformers and G.I. Joe toys.

Toy maker Mattel Inc.'s third-quarter profit declined 3 percent because of a tough economy that is still dampening demand for toys.

Mattel

Mattel and its Fisher-Price subsidiary have agreed to settle a consumer lawsuit for what could total more than $50 million over the 2007 recall of millions of toys made in China that were found to contain high levels of lead, the company said Tuesday.

What will Santa have in his bag this holiday season? Toys ‘R Us, the largest U.S. toy retailer, has issued its forecast for the hottest toys .  With consumers still watching their spending carefully, one theme that stands out  is a focus on value. Toys on the list range from $10 (squeaking Zhu Zhu interactive hamsters )  to about $350 (Disney 's  Netpals netbook computer).  Click ahead to see which toys made the cut. 

The nation's biggest toy-store chain is placing its holiday bets — and because the stakes are high, the prices are lower.

Toy maker Hasbro Inc. said Monday strong sales of the morphing robots helped its second-quarter profit rise past analyst expectations.

Mattel Inc. and its Fisher-Price subsidiary have been hit with a $2.3 million civil penalty for producing toys with unsafe levels of lead paint.