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Who mugged the toy industry: Was it the economy or was it Wii?January 16, 2009
To make my point, consider two interesting news items that came out over the last couple of days. The first one: “Toy Industry, Not Recession-Proof, Also Hit in Holiday Season,” appeared January 15 on CNNMoney.com. To quote the piece: “Thought to be the most recession-proof among consumer retailers, [this year] toy companies had trouble avoiding the broad economic downturn, analysts said.”
Here is what I think: Let’s not be so quick to buy into the notion that the toy industry is no longer recession proof. That perception may hide the fact that the electronic gaming industry ate our lunch. In fact, Wii with its appeal to Mom’s (our mainstay shopper) may be a paradigm shifter as to who buys and plays with these kinds of products.
This industry has been and is continuing to lose market share to an electronic gaming business that first grabbed the kids and now has the moms. Being lulled to sleep by the notion that forces are at work that are beyond our control (the economy) is mistaken and, when this recession is over, could put us in a hole from which it could take a long time to dig out. Yes, the economy is tough but the electronic gaming industry may be tougher. The bad economy will go eventually away, our competition won’t.
Posted by Richard Gottlieb on January 16, 2009 | Comments (3)
January 16, 2009
In response to: Who mugged the toy industry: Was it the economy or was it Wii? jimmydash commented: One must remember too, that the first kids it(the electronic gaming industry) grabbed are now dads imparting their opinion on what the moms are buying and the kids are getting. It's a full on assault on the traditional toy types. Glad I can make some of the old favourites myself.
January 19, 2009
In response to: Who mugged the toy industry: Was it the economy or was it Wii? Mary Couzin commented: The electronic industry is spending millions and millions on promotion as well as on research to prove they are beneficial for kids/adults and getting into schools and libraries. For example, the Verizon Foundation recently gave the American Library Association $1,000,000 to help them get electronic games into libraries. I received a call a couple of weeks ago from a city library to help me get them speakers to promote video games at a symposium they were holding funded by a another grant. Serious games is yet another group that promotes video games in society. There are many.
January 22, 2009
In response to: Who mugged the toy industry: Was it the economy or was it Wii? Nate Scheidler, Chicago Game Design Grou commented: A large part of this is interactivity. Once one figures out how to connect and start a video game system, the system itself can provide essential responses to the user in order to facilitate play.
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