Hot in '07: Robots, guitars, more digital toys

Toy Fair preview: Eager to recapture kids' attention after the iPod onslaught, toymakers are putting a 'digital' twist on classic toys.

By Parija B. Kavilanz, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- If you think that souped-up cell phones, iPods and videogames have rung the death knell for toys, then think again.

A preview of some of the hottest new toys that will be unveiled for the first time next month at the annual American International Toy Fair in New York, show that toymakers are ready to battle for their turf with plenty of innovation and creativity.

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New from Fisher-Price this year are T.M.X. Ernie and T.M.X. Cookie Monster.
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Some of the standouts include high-tech robots, guitars, MP3 players for babies and a singing "diva" Barbie. Jakks Pacific has a new laser tag game that actually shoots out a visible beam.

No doubt, these examples show how companies like industry leaders Mattel (Charts), Hasbro (Charts), Jakks Pacific (Charts) and others have accepted that kids are becoming more technology savvy at a younger age, and therefore are more inclined to discard their Barbie dolls and Power Ranger action figures for the cool MP3 player or camera cell phone.

Indeed, that trend is reflected in the fact that the $21 billion toy industry has struggled to grow sales in recent years.

Chris Byrne, an independent toy industry analyst, said the macro trend for the industry over the past two years has been this push toward tech innovation in traditional toys.

Reyne Rice, toy trend specialist for the Toy Industry Association (TIA), agreed.

'Digital is a part of life now for kids and adults. I am feeling very optimistic for the industry this year," Rice said. "I'm seeing lots of innovation across categories. But at the same time the counter-trend to tech toys is alive and well, whether it's arts and crafts or demand for mind games like Sudoku."

However, Byrne spotted a difference in this year's offerings.

"I think there's a real shift away from incorporating technology for technology's sake and instead using technology to make a good toy," Byrne said.

"When kids have got a Wii or PlayStation 3, they need a compelling reason to play with something else," he said.

Additionally, consumers need to be aware that several of this year's buzzworthy "tech" toys are more pricey.

Said Bryne, "Prices for toys are moving up. But that's also because plastics prices have increased. Higher oil prices affect every aspect of the toy industry. Companies end up paying more for fuel and shipping costs"

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.