The combination of digital games and physical toys and game components is moving to its next level: from mere add-ons to truly integrated gaming experiences. Triggered by major commercial successes like Skylanders and Infinity, the rise of AR in computer gaming, as well as an impressive number of innovative start-ups and kickstarter projects, there are an increasing number of game developers, publishers and toy companies who are seeking innovative approaches to capture this opportunity. We will explore the current state of product designs out there and discuss the major challenges of designing and developing truly integrated digital/physical hybrid games. Intended audience & prerequisites: Game developers and publishers who are interested to explore / enter this new segment of games. Session takeaways: Current state of the industry; what are the highlights and major successes. What are new and trending technology solutions that may be used in this context. What are the major game design and product design challenges and success factors for hybrid games.