Battle of the Toys
Posted: Tue Jun 12, 2007 5:58 amToy manufacturers are betting on a good year for sales with summer movies to help promote their toys. With so many action packed movies like Spiderman, Pirates of the Caribbean, Fantastic Four, and Transformers- what will be the most popular toy?
Sheliah Gilliland of Internet toy retailer EToys.com is betting on Transformers.
"Transformers will be the biggest seller — it's a movie based on a line of toys that has been popular since the '80s," she said. "They have always been strong sellers but, because of the movie, they are coming back in a huge way."
With so many sequels, toy manufacturers — as well as the studios — must up the ante to outdo the previous offering.
Transformers are considered the ultimate boy toys that could also be a hit with dads who played with them when they were young.
Hasbro has come out with an updated line, including the Optimist Prime truck that transforms into a blaster with one pull of a handle. The company will release a new video game in time for Father's Day.
In this summer's toy war, Hasbro, may have the most to lose.
Hasbro holds the master toy license to three Marvel comic-book movies being released this summer, "Spider-Man 3," "Transformers" and "Fantastic Four: Rise of the Silver Surfer." That means the manufacturer will essentially be competing against itself in the toy aisle.
But having toy lines for three summer blockbusters may not be a walk in the park for Hasbro.
Lots of movies do not translate to strong toy sales, said Gerrick L. Johnson, an analyst with BMO Capital Markets Corp.
"We think this [Marvel licensing] deal will be a profitable one for Hasbro; we also think it is expensive and risky," he wrote in a recent report.
The company needs $1 billion in Marvel-related sales over the next five years to make a profit on the licenses, he said. "That is a lot of toys and our concern is that interest in super-hero-related movies and toys will begin to wane."
Hasbro is confident it will gain from its Transformers brand and has signed deals with 230 licensees worldwide for T-shirts, bedding, cellphones and shoes.
"It's much more about total enterprise for us," said Brian Goldner, chief executive of Hasbro. "We know we have created a great array of products for kids and collectors."
Read the entire article here.
Sheliah Gilliland of Internet toy retailer EToys.com is betting on Transformers.
"Transformers will be the biggest seller — it's a movie based on a line of toys that has been popular since the '80s," she said. "They have always been strong sellers but, because of the movie, they are coming back in a huge way."
With so many sequels, toy manufacturers — as well as the studios — must up the ante to outdo the previous offering.
Transformers are considered the ultimate boy toys that could also be a hit with dads who played with them when they were young.
Hasbro has come out with an updated line, including the Optimist Prime truck that transforms into a blaster with one pull of a handle. The company will release a new video game in time for Father's Day.
In this summer's toy war, Hasbro, may have the most to lose.
Hasbro holds the master toy license to three Marvel comic-book movies being released this summer, "Spider-Man 3," "Transformers" and "Fantastic Four: Rise of the Silver Surfer." That means the manufacturer will essentially be competing against itself in the toy aisle.
But having toy lines for three summer blockbusters may not be a walk in the park for Hasbro.
Lots of movies do not translate to strong toy sales, said Gerrick L. Johnson, an analyst with BMO Capital Markets Corp.
"We think this [Marvel licensing] deal will be a profitable one for Hasbro; we also think it is expensive and risky," he wrote in a recent report.
The company needs $1 billion in Marvel-related sales over the next five years to make a profit on the licenses, he said. "That is a lot of toys and our concern is that interest in super-hero-related movies and toys will begin to wane."
Hasbro is confident it will gain from its Transformers brand and has signed deals with 230 licensees worldwide for T-shirts, bedding, cellphones and shoes.
"It's much more about total enterprise for us," said Brian Goldner, chief executive of Hasbro. "We know we have created a great array of products for kids and collectors."
Read the entire article here.
