Disney has decided to divide its toy merchandising between rivals Hasbro and Mattel. Disney has had a long licensing relationship with Mattel, which now will only handle their preschool and plush toys, dolls, games and puzzles. Hasbro will handle the more lucrative toys, action figures and games portion of Walt Disney products. Though Disney spokeswoman Chris Castro said Mattels licensing deal with Warner Bros. HARRY POTTER was not a factor in the decision, many insiders say that Disney moved away from Mattel who they feel will not give them the desired attention once the POTTER merchandising bonanza begins. The first Disney film Hasbro will handle will be Disney/Pixars MONSTERS INC. due for release in fall 2001. Financial terms of the deal were not disclosed.