news-record.com

HACKENSACK, N.J. (MCT) — The game that toy makers and toy sellers will be playing this holiday season is "Make Sure the Price is Right."

Toy company executives at a holiday kickoff event in New York recently said they are following the lead of consumers and being much more price conscious this year. But they also are betting — as they do every year — that shoppers will pay extra for the "wow" factor — in the form of such toys as a $149 high-tech version of the Rubik's Cube and $349 mini-laptops for kids.

"Based on history, children are the last place where parents cut back," said Jim Silver, editor of Timetoplaymag.com, the online publication that hosted the event. "However, they're going to be a lot more careful about how they spend this year."

That's because toy industry experts expect another pullback this year. BMO Capital Markets analyst Gerrick Johnson predicts toy sales will fall 1 percent during the holiday quarter. Toy retailers make up to 40 percent of their annual sales in the final quarter.

The key this year, said Neil Friedman, president of Mattel Brands, is getting the price-value equation right. "Whether it's a 99 cents Hot Wheels car, or a $359 Power Wheels vehicle, it has to perform properly and have good play value," he said. About 80 percent of Mattel's holiday toy offerings are priced under $30, Friedman said.

This year "we're really honed in on the $10, the $20, the $30 price point," said Mega Brands executive Vic Bertrand. "These are the popular price points that are resonating with the consumer." Early sales results indicate that strategy is working, he said. Mega Brands makes construction toys, blocks and puzzles.

"Last year we probably had four to five toys in the $50 to $100 range," said Ken Price of Jakks Pacific, the fourth-largest U.S. toy manufacturer. "This year we have two."

And the toy that could decide whether this holiday is a hit or miss for the industry is a $7.99 robotic hamster in the Zhu Zhu Pets collection that toy sellers can't keep on the shelves.

"That's the toy, when the trucks drive up, people are waiting for it," said Jerry Storch, chief executive officer of Wayne-based Toys "R'' Us Inc., referring to the robotic hamster.

Zhu Zhu Pets were among the 16 toys that made the Timetoplaymag.com "Most Wanted" list of hot toys Thursday. A sold-out toy that prompts moms to stalk delivery trucks is generally considered a boost for the entire industry, because it pushes parents to make more frequent visits to toy stores, and purchase other merchandise while they're there.

The toy manufacturers and toy sellers at the event were cautiously optimistic about holiday sales, but their usual enthusiasm was tempered by two difficult Christmases past. The industry is coming off several years of flat or declining results. Sales in 2007 slipped 2.4 percent and fell just under 3 percent last year, according to research firm The NPD Group.

Wal-Mart Stores Inc., for the second year, is promoting its "toys for $10," and has expanded its list of $10 offerings to 100 toys from 10. Storch said his Toys "R Us stores are stocked with 6,000 toys under $10, and that while Toys "R'' Us can compete on price, the company's superior selection is what parents want. Storch's strategy is that parents want the right toy for their children, not necessarily the cheapest.

Several new New Jersey businesses said they were eager to enter the game and expressed confidence that the right toy can thrive even in a recession. Randolph-based puzzle and crafts company Cra-Z-Art is facing its first Christmas as a new company, created by Larry Rosen, whose family founded crafts and crayon maker Rose Art. "We've shipped over $50 million worth of product since January or February. That's a lot in a very short time," said Vice President Vic Amato.

Eric King of Saddle River, N.J., came to the event to promote his Shred Sled, a four-wheel, two-deck skateboard that sells for $120. "We're starting to get a lot of interest," he said.