ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Thursday, November 28, 1996 TAG: 9612030134
SECTION: NATIONAL/INTERNATIONAL PAGE: A-32 EDITION: HOLIDAY
DATELINE: NEW YORK
SOURCE: Associated Press
THERE ARE NO GOTTA- HAVES this year, but action figures, Pet Doctor Barbie and anything tied into "101 Dalmatians" also are popular.
He flies, flounders and flips, and this fancy footwork is turning Super Mario 64 into a big hit of the holiday season.
Running on Nintendo's new home video game player, Super Mario is one of the most sought-after toys this Christmas, along with Pilot Wings and Mortal Kombat Trilogy, two other games for the just-released Nintendo 64 system.
``Video games are coming on strong this year,'' said Gary Jacobson, an analyst at Jefferies & Co. in New York. ``That's generating a lot of excitement for toys in general because it's bringing more people into the stores.''
That may mean strong sales for other toys on kids' wish lists, including Barbie, Star Wars action figures, Goosebumps and anything tied to the new movies ``101 Dalmatians'' and ``Space Jam.'' A barrage of classics from Monopoly to Mr. Potato Head also are expected to be big sellers.
After several years of soft sales, video games are coming back, led by the launch of Nintendo 64, which uses advances in computer chip and software design to create three-dimensional game play. The system costs about $200 in stores, with each game tacking on an additional $70 on average.
Sony's PlayStation and Sega's Saturn, while on the market for a year, are also quite popular and are helping to revive interest in video games. Both game players retail for about $200, with games costing an average of $50 each.
Although these high-tech systems are expensive, parents are scrambling to find them in time for the holidays and retailers are struggling to meet customer demand.
``There are no screaming gotta-haves this Christmas, but there are a few hot products that everyone will be going after,'' said Margaret Whitfield, an analyst at Hancock Institutional Equity in New York. ``That's sending parents to stores now before stocks sell out.''
That's a good sign for the toy industry, which depends on the fourth quarter for about 65 percent of all its sales. Sales hit $20 billion last year and analysts predict that amount will grow by 4 percent to 6 percent in 1996.
``Unlike last year, the economy is pretty good right now and people are willing to spend,'' said Frank Reysen, editor of Playthings magazine, a New York-based trade publication. ``That should make it a good Christmas season after a few lackluster years.''
Mattel Inc.'s Barbie still reigns as the top-selling doll, with a few new looks this year, including pet doctor and scuba diver outfits. Holiday Barbie is having another big year, with inventories already low in some part of the country.
Kenner's Juice'n Cookies Baby Alive, which sips, chews and dirties her diaper, is a strong contender in the doll segment, as are Mattel's Cabbage Patch Kids, especially its new SnackTime Kid that looks like it's really eating.
Demand for action figures is strong again this year, with Batman, Star Wars and GI Joe among the hot picks.
And, as usual, toys with movie and television tie-ins are expected to be on many shopping lists. Store shelves are filled with toys from Michael Jordan's new animated film ``Space Jam'' and Disney's ``101 Dalmatians'' and ``The Hunchback of Notre Dame.''
In addition, the video release of ``Toy Story,'' the box-office hit from last Christmas, has awakened interest in classic toys like Mr. Potato Head and Slinky Dog, which are featured in the film.
Kids also want anything that's tied to Goosebumps, the children's books written by R.L. Stine. Glow-in-the-dark flashlights, scary-faced figures and board games are a few of the Goosebumps-themed toys.
Parents also are turning to creative and educational toys, especially with children becoming more computer savvy and more families owning PCs.
``Toys are entertainment, and entertainment is about building on your intelligence,'' said Judy Ellis, chairwoman for the New York's Fashion Institute of Technology's toy department. ``This year, we're seeing a lot of toys and interactive software that bring children into creative play.''
Tiger Electronics' My First Laptop teaches preschoolers counting and matching on a battery run system, which also can be hooked into a home computer for more advanced applications. V-Tech's Smart Start Speak & Listen Computer is geared for elementary school students learning spelling and math.
Tyco's $100 VideoCam, which connects to a VCR to allow kids to shoot their own black-and-white videos, also is a popular pick, as are the computer drawing system kidDraw, made by kidBoard, and Tiger Electronics' Brain Warp, a fast-paced hand-held game.
Also going high-tech are classic board games, with titles like Monopoly, Clue and Battleship available on CD-ROM. Barbie has a new CD-ROM that lets kids create their own fashion designs, print them and then make the outfits.
``I'm looking for toys that my kids can learn from, but they also need to be fun and they have to want to play with them,'' said Valerie Ortiz of New York, who has two children ages 5 and 2.
Although retail sales and consumer confidence have rebounded in 1996, the toy industry is still using aggressive tactics to attract shoppers.
Toys `R' Us Inc., the country's largest toy store operator, released its holiday sales catalog in early November with $1,700 in coupons. And Kmart, the No. 2 toy seller, already launched a new national advertising campaign featuring Rosie O'Donnell and Penny Marshall.
But the pre-Christmas promotions have been scaled back somewhat after toy retailers were hurt last year by deep discounts that cut into their profit margins.
``The deals aren't out there this year,'' said Whitfield of Hancock Institutional Equity. ``Toy retailers are watching their inventory and cutting out inventory that didn't sell.''
With the holidays just weeks away, kids are busy compiling their wish lists.
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