Hissing is a defensive behavior. So, during playtime, try not to dangle the toy in your cat's face or to wave it frantically. Your kitty is probably getting frightened, and your attempt to entertain has probably become less of a game to your cat and more of a battle.
You can also move the toy away from your pet and not toward it. Remember that prey never willingly approaches a predator. The toy shouldn't always be in motion, so your cat has time to plan its attack. And make sure your feline gets to catch it often during the game.
Look for toys that are well-suited to your cat's ability and temperament. For example, your cat may need a small toy or one that doesn't make any noise. Toys like these are less likely to frighten felines.