Video games kindle holiday sales - at discounters

Discount Store News, Nov 27, 1989

Video Games Kindle Holiday Sales

By all accounts, video games again will head the Christmas parade of hit toys.

Even though tight supplies of basic Nintendo sets have eased enough to enable some retailers to shave a few dollars off the price, a new hand-held game set from Nintendo, Game Boy, $89.99, will buoy the category.

In addition, sales of new 16-bit games from SEGA and the Genesis and TurboGrafx from NEC, about double the $99.99 price of the basic Nintendo, will help swell retail coffers.

At least that's how major toy retailers and industry analysts view Christmas '89.

K mart Banks on Nintendo

"Anything Nintendo" will be a big seller, K mart figures, including the new Nintendo Power Glove control system from Mattel.

In previous years, K mart has issued a list of the expected 20 top sellers, but this year it talks in categories, a spokeswoman said.

This year is shaping up as a year for the basic category, so K mart also expects such standbys as 26-year-old Barbie to do well.

In the collectibles category, Teenage Ninja Mutant Turtles from Playmate stand out at K mart.

Super-fast battery-powered miniature racing cars from several vendors, are a new other category that K mart expects will be popular.

Toys "R" Us has put Record Breakers, Hasbro's entry in the micro racing car category, on its "What's Hot" list. They sell for $8 to $10.

But Nintendo's new Game Boy set heads TRU's list. Other expected video game winners are SEGA's 16-bit Genesis at about $200 and TurboGrafx, NEC's 16-bit games system, also at close to $200.

TRU expects board games to do well, including Scattergories from Milton Bradley, $20, and Encore, Parker, $16.

Miniature racers in the $5 to $12 range should be winners. Besides Record Breakers, TRU also carries Hyper-Racers, Bandi-American, Super Changers, Mattel, and Hyper Drivers, Tonka. Accessory packages at $2.99 to $4.99 also should do well.

TRU is expecting continued success from old reliables, such as G.I. Joe action figures, $3, Ninja Turtles, $2.69 to $2.99, and Barbie, at $10.99 to $14.99.

A new Holiday Barbie at $25 and her Soda Shop accessory at $29.99 should help sales.

In other expected winners in dolls, TRU looks to Oopsie Daisy, Tyco, $38, and Dolly Surprise, Hasbro, at $11.99. A new Dolly Surprise doll changes hair color, as well as grows it, at $19.99.

Toys "R" Us also likes the plush category, such as My Little Pony, Hasbro, opening at $3.99.

The same Nintendo, Barbie, Ninja Turtle and superfast racer lineup also prevails at Kiddie City, the major retail chain of Lionel Corp.

The Barbie Soda Shop will be a top contender, chief operating officer Marvin Katz said. "There's nothing sensational in the Barbie category," he said, "just good activity."

In the big doll category, Lionel expects good results from Mattel's preschool Mickey and Minnie Mouse dolls, under license from Disney.

Thanks to booming sales of mountain bikes, bicyle business has picked up, Katz said, and Lionel expects Fisher-Price's battery-powered cars to sell well at $200 to $300.

"Video is still the dominant category," said Bruno Ferretti, president of Wareham, Mass.-based Tons of Toys, now operating under the name Toys'n Toys'n more.

"The consensus is that Nintendo supplies are starting to loosen up," Ferretti said.

The exception will be Game Boy, with production capacity of 2 million and expected demand of 4 million.

The new miniature racing car category is a "welcome addition," Ferretti said. The promotional hype that vendors are lavishing on them will benefit overall toy sales, Ferretti said.

Dolls continue to perform well, Ferretti said, especially Barbie.

David Leibowitz, senior vice president, American Securities Corp., predicted another record year for Barbie.

Leibowitz joins the chorus singing the praises of Nintendo's Game Boy, the "hot" miniature racing car category and G.I. Joe action figures.

In dolls, Bouncing Baby from Galoob looks good both to Leibowitz and to Paul Valentine, retail toy analyst for Standard & Poor's.

Valentine also likes Parker's Encore board game. "It's music to retailers' ears," he said.

In addition to the expected winners on everybody's list, Game Boy, Ninja Turtles, miniature racers, Valentine also predicts good sales of: Micro Machines, Galoob, Police Academy figures and accessories, Kenner, and Hit Sticks, a Nasta entry in the electronic music category.