High-tech toys drive International Toy Fair, again

The American International Toy Fair begins on Sunday in New York, and retailers are already gearing up for a high-tech bonanza.

In the wake of the retirement of Aibo, many retailers are banking on a new generation of life-like electronic toys, such as Butterscotch the robotic pony and a Barbie doll that can mimic the dance moves of its owner.

That robotic pony is being offered up by Hasbro, at an initial price of US$299.99. And the “Let’s Dance” Barbie will be a prime offering from Mattel, which plans to charge at least US$200. With the increased functionality comes higher prices, it seems.

The drive toward electronic toys reflects an overall shift in the tastes of consumers, analysts say.

“Children are migrating to consumer electronics faster than toy companies can take them there,” said Sean McGowan, a toy analyst at Harris Nesbitt.

Many toymakers are scrambling to regain shares in what they see as an weakening market. Overall toy sales were down 4 percent in 2005, despite what many say was a healthy holiday buying season, and down 3 percent in 2004.

Hoping to reverse a two-year trend while pushing the technological envelope has led some companies to cut their prices at the risk of cutting their own throats. The lower price of microchips helps a good deal, but the risks of trotting out an expensive (and expensively made) toy and flopping remains all to real. Still, the AITF is a prime marketplace for showcasing all things new and fun.

Such is the case with Mindstorms NXT, a build-your-own-robot kit from Lego. An update of the original, which is by now seven years old, this kit will sell for US$249. The NXT also represents a concerted effort by Lego to listen to consumer demands. On the consulting panel for the project were four consumers who knew what they wanted (and didn’t want) from the next generation of Mindstorms. What you can do now with your NXT kit is build a robot that uses a 32-bit proccessor to, among other things, hear, see colors, and react to touch.

On the lower end of the scale (US$29.99) will be Cuddle Chimp, another Hasbro offering, this one a furry friend that snuggles into your arms and makes happy sounds when you touch it.