Techno toys may be best bet for 2005 rebound

DSN Retailing Today, March 14, 2005 by Doug Desjardins

NEW YORK -- Electronic toys with microchips that make them dance, sing and remember names were the big story at this year's International Toy Fair. The seven-day event that ended Feb. 23 showcased thousands of new toys for retailers still waiting for the industry to rebound.

According to the NPD Group, toy sales in 2004 fell 3% to $20.1 billion, compared to $20.7 billion in 2003, a drop that wasn't a surprise as sales have been stagnant for four years. But sales of electronic toys that target infants and preschool kids were up 10% last year, and that trend was evident in showrooms everywhere at Toy Fair.

As usual, interactive plush dolls were a hot item, headed by the newest Elmo Doll from Fisher Price that sings and dances to the song "Shout!" The company also unveiled "Elmo Knows Your Name," a plush that comes with a USB cable that allows parents to download their child's name, favorite food and other information into Elmo while the doll is still in its box.

Toys with cameras were also a hot trend at the show. Hasbro's ION and Fisher Price's Star Station both feature cameras that plug into TVs and encourage kids to dance, sing and play games while they watch themselves on the screen. MGA Entertainment's Red Eye Spy Camera Monster Truck is controlled by a remote that displays the view from a hood-mounted camera.

"Star Wars" had the largest presence at the show, and master toy licensee Hasbro had dozens of new games and action figures on display for the May 19 release of "Star Wars Episode III: Revenge of the Sith." Hasbro executives said product would debut in stores on April 2, with Wal-Mart leading the way with "48 Hours of the Force," a two-day promotion of Star Wars toys and merchandise.

Another hot property was Batman, which is getting a new spin this summer with the Warner Bros. film "Batman Returns." Mattel had a full line of Batman action figures and games on display along with toys for "Harry Potter and the Goblet of Fire," due later this year. Other film properties with a strong presence were Disney's "The Chronicles of Narnia: The Lion, The Witch and the Wardrobe" and 20th Century Fox's "The Fantastic Four."