Toy Firms Seek Early Digitoy Adopters As Retailers Prep for Show 'n' Tell

Brandweek, Feb 21, 2000 by T.L. Stanley, Becky Ebenkamp, Terry Lefton, Karen Benezra

As if to permanently put to rest the debate about whether kids are getting older younger, manufacturers at last week's Toy Fair 2000 set loose a flotilla of toys that incorporate every manner of sophisticated technology from voice chip and infrared to full-blown artificial intelligence, some of it aimed at the youngest consumers, the infant and preschool market. While many in the industry think the inevitable shakeout will come for the dozen or so robotic dogs to be rolled out this year, they also say high-tech toys represent the future of the business, potentially breathing in the life needed to keep kids' attention past their 7th birthday

"The demos have been shifting younger," said Perry Drosos, Hasbro's vp-marketing, boys division. "Maybe technology can help capture the 8-, 9- and 10-year-olds."

Just like man's evolutionary chart, technological toys have come a long way baby Hailed in its heyday Teddy Ruxpin would look absolutely primitive next to Mattel's new Magic Moves Baby whose lifelike twitches rival the audio-animatronics at Disney theme parks. Hasbro, meanwhile, answers with My Real Baby a doll programmed with "emotional" responses that was created out of an alliance with artificial intelligence maker iRobot Corp. While technology has gotten cheaper, chips are getting stronger, making it possible to add an interactive component to just about any toy on the market, even items at the lowest price point.

Actimates begat Furby which this year begat a billion tinier and tougher tech toys that communicate with themselves and their kid masters. It's apparently no longer good enough for kids to learn from their toys, their toys will be "learning" from them; Playmates' Amazing Babies, the next step in the Amazing 'doll system" franchise that started with Amy and Ally go from babble to words to phrases the more kids play with them. A new boy doll version, Talking Little T, is a licensed offering with Little 'likes that will even admonish kids who play too rough. Hasbro's Pokemon Think Chip Battle Stadium allows its action figures to retain information about opponents and past skirmishes. Tiger's Poo-chi, a dog with bio-rhythmic technology knows its owner and responds to that person's touch.

"In order to bring your toys to life you need leading-edge technology today," said Neil Friedman, president of Mattel's Fisher Price unit. "After Elmo, when a consumer picked up a plush [toy] they began squeezing it to see what it did. We've spoiled the customer; they expect more,"

Even traditional toys, such as Matchbox trucks, have smartened up: the Workin' Buddies set has a chip-enhanced driver that "commands" its vehicle to drive in reverse and perform other such tasks. Fisher-Price's Little People speak their first words, and the division gives preschoolers their first electronic handheld games. Room alarms, featuring a variety of entertainment licenses, alert kids when their private space is being invaded; the Yahoo!Cam (Brandweek, Feb. 7) can be set as a surveillance cam and can shoot in near darkness for the same purpose. Bandai, through an alliance with Microsoft, is launching the first action figure that can download phrases from its Power Rangers TV series, back this season as Lightspeed Rescue, refreshing the toy daily The Deluxe Interactive Omega Megazord is powered by a computer chip the size of a sugar cube and will retail for about $60.

Products for girls, who seemed to be largely ignored in the first round of techno items, will be abundant, with Tiger's HitClips turning downloadable sound into a fashion accessory and Mattel Media spending heavily on the relaunch of the Purple Moon franchise, while adding girl titles to Nintendo's GameBoy and other platforms. In the gender neutral area, Intel Play launches a digital movie camera for $100, and Tiger promises free e-mail via Rocket Notes, which works through phone lines.

"We can't ignore the technology that's available to make toys better," said Marc Rosenberg, Tiger's vp-promotions. "But it has to open up a fantasy and stretch the imagination. The toy must prompt the kid."

For tweens who can't wait to be teens, Mattel's Keaneeyed Diva Starz are Amazing Amy Attitude. The Divas' chips allow them to talk to their masters in sassy voices, prompting girls to hand them accoutrements like cell phones and dress them in the right outfit for that all important trip to the mall. And signaling a growing synergy between traditional toys and the Net, Diva Starz will get a teaser ad campaign on girl Web sites, as well as their own dedicated site, launching in July The oh-so downtown Divas, who could end up grabbing potential Barbie customers, also have a CD-ROM.

Mattel's Milo the Robot, at $80, builds on previous toys programmed with limited words. Milo is hooked on phonics, sounding out keypad-input letters to form syllables and words, such as a child's name. The only limit, Mattel execs said, are 40 words deemed "inappropriate," sure to become a techno-kid challenge.

"There's a period where people will be somewhat enamored by all the glitz and glamour," said Matt Bousquette, president of Mattel's boys and entertainment division. "But in the end, the toy has to have inherently good play value that's consistent with the developmental needs of the kid at a given time."