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MAIN STORY OF THE WEEK

2 MAIN ARTICLES MADE IT THIS WEEK!

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Toymakers Hope High Tech Will Mean Hot Sales

By RACHEL BECK

c The Associated Press

NEW YORK (Feb. 3) -- The first set of batteries in the Furby have yet to fade and the scouts are already on the lookout for the must-have toy of 1999.

But only one or two of the thousands of toys showcased at next week's American International Toy Fair will be lucky enough to reach ``hot toy'' status.

Those most likely to succeed: High-tech toys that show great innovation.

``There's no blueprint to success when it comes to Toy Fair,'' said Chris Byrne, a toy consultant who works at The Toy Book, trade publication. ``But there's no doubt that there will be lots of attention paid to anything that's really different.''

The toy industry went through some growing pains last year. Sales in 1998 were less than stellar, falling 0.3 percent to $15.2 billion from the year before.

For the first time, there was evidence of a shift in spending away from traditional toys -- dolls, board games and activity sets -- to interactive toys, CD-ROMs and video games.

That's why Furby thrived. Children -- and their parents -- liked that the furry, Gremlin-like doll spoke its own language and could interact with them. It added some spontaneity to playtime.

Entering 1999, more toymakers are stepping up their technological offerings -- even with some classic toys like Kermit the Frog.

Hasbro has a CD-ROM for its 50-year-old Easy-Bake Oven brand that lets kids place a template over a computer keyboard and ``bake'' virtual cookies and cakes. Microsoft inserts a computer chip into a line of plush Teletubbies, allowing the dolls to play games and interact with specially encoded videos.

Play-By-Play's My Best Friend doll can actually converse with a child, thanks to the voice-recognition technology inside the doll. Playmates launches friend.link, a handheld device that lets kids send each other digital messages by radio frequency.

Intel, the world's biggest chipmaker, makes its first foray into toys in a joint venture with Mattel. The Intel Play X3 Microscope plugs into a computer and magnifies objects by up to 300 times on the screen, while the Intel Play Me2Cam is a camera that allows kids to project their moving images onto a computer monitor.

``More than ever, we are seeing the marriage of technology and toys because this is what today's kids want to have during playtime,'' said Eric Johnson, a professor at Vanderbilt University's Owen Graduate School of Management in Nashville.

While technology rules, there won't be a shortage of toys tied to popular movies and television shows. Toymakers like these products because they receive free advertising from the heavy publicity that these entertainment properties get.

The hot movie license for 1999 is ``Star Wars,'' with its first prequel, ``Episode I: The Phantom Menace,'' due out in May. Lego will launch its first ever toy license with a line of space ship building blocks tied to ``Star Wars.''

For television, Tyco Preschool extends its Sesame Street brand with Magic Talking Kermit The Frog, who will ribbit and make fly-catching sounds when his stomach is squeezed.

``Though there is no guaranteed formula for success in the toy business, manufacturers understand that those who can snare a hot children's property are often on track to generate big sales,'' said Charles Riotto, executive director of the International Licensing Industry Merchandisers' Association.

Also, toymakers will show many classic toys, which remain the backbone of their businesses.

Mattel's Barbie will debut in a series of celebrity dolls as comedian and talk show host Rosie O'Donnell. Usually tiny Hot Wheels will get a little bigger with a new line of larger cars.

As for Furby, the hot toy of Christmas past isn't disappearing. In fact, Tiger Electronics says that Furby might sign some television and film deals this year.

To keep the Furby excitement building in 1999, Tiger will use a marketing tool that Ty Inc. proved to be very successful with its Beanie Babies dolls. It will release four limited edition Furbys, which will only be offered at certain times of the year.

``You've only seen the beginning of Furby,'' said Tiger spokesman Marc Rosenberg.

This is © copyrighted by AOL

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From: Tiger Electronics (http://www.furby.com)

HEY FURBY FANS!

Don't believe everything you read. There have been a lot of rumors floating out there about an impending change or redesign of Furby. This is absolutely untrue.

There may be some exciting new Furby characters and colors in the works, but no redesign.. We are thrilled that so many millions of people love this unique character as much as we do. While there will be lots of new Furby news in 1999, Furby will remain as cute, lovable and fun as ever.

© 1998 Tiger Electronics, LTD.

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