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Are toys going extinct?
Brett Smith for redOrbit.com – Your Universe Online
Most of us remember growing up amidst a floor full of toys that passing grown-ups had to navigate like an Iraqi minefield, but the device-ification of all aspects of modern life has invariably led to kids spending more time with a touchscreen than a set of Lincoln Logs.
Iconic toymaker Mattel has struggled to adapt to this changing landscape, and the company saw its CEO resign this week after months of sagging sales were capped by a disappointing holiday shopping season.
Built on All-American mainstays like Barbie and Hot Wheels, Mattel has seen its sales fall short of predictions for the last three quarters. A Wall Street Journal profile last month highlighted the toymaker’s stagnant creativity and unwieldy bureaucracy.
Mattel’s corporate dysfunction couldn’t come at a worse time: Newcomers like VTech are successful marketing gadgets to toddlers and tech giants like Amazon are following suit.
The iconic toy company has made attempts to delve into electronics, notably buying educational software maker The Learning Company in 1999 for $3.6 billion. However, the purchase led to Mattel shedding about $1 million per day and The Learning Company was sold a year after it was bought for just $27 million. In 2012, Mattel attempted to roll out an app series called Apptivity, but the series never caught on.
Mattel is not alone in its tech-related woes, as many companies making gadgets for kids have struggled of late. Just last week, LeapFrog announced losses related to sluggish holiday sales – which caused its stock to plummet by 35 percent.
Despite the grim news for some companies, studies have shown that today’s kids are embracing technology younger than ever. One study published in June revealed that ownership of tablet computers in households with 2 to 12 year old children has risen from 50 percent to 59 percent between 2013 and 2014.
The study, from research company The NPD Group, also found that use of tablets among kids in this age group was up over the same time period, from 38 to 48 percent. Nearly 50 percent parents in the study claimed that their child is using a tablet more than they were last year, an increase not seen on any other device. While tablet possession and play are escalating, two-thirds of parents don’t view it as a step away from traditional toys, The NPD Group reported.
“Most households have electronics such as tablets, and in some cases children not only use these devices, they are the primary owners,” said Juli Lennett, president of the toys division at the company. “The role of technology in children’s lives cannot be overlooked, and parents recognize that, while sometimes struggling with it.”
The study also found that older kids are more likely to experience the changing trends, while younger children still play mostly with traditional toys.
“Understanding the evolution within today’s play arena is as important to success in the toy industry as understanding the balance that today’s parents try to strike between the role of technology and traditional toys in their children’s lives,” Lennett added.
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Source: http://www.redorbit.com/news/technology/1113321857/are-toys-going-extinct-012715/
