Let's Talk

January 20, 2009

Today is an historic and wonderful day for the United States and the world. We are seeing the inauguration of an African-American President of the United States. An event of this nature truly speaks to the greatness of any society that can, in essence, peacefully reinvent itself.

This moment is empowering in that it shows that what may seem to be intractable or institutionalized can in fact change; that paradigms can in deed shift; that icy rivers break up and that spring does come.

We in Toy Nation are at a point in our history in which we can, if we begin the process, change as well. We cannot ignore the fact that whatever we are doing is not working.

We have seen a steady slide in toy industry revenues over the last five years. According to a JP Morgan analysis entitled “Not As Much Fun and Games This Holiday Season,” we are down 2% in compound annual growth since 2002.

Yes, we have taken our lumps. The safety recalls of 2007 and this year’s economic downturn have certainly not helped. We should not ignore the fact, however, that while we have been in decline, the electronic gaming industry has, over the same period of time, been achieving huge gains in sales. When I consider this, the conclusion I have to come to is that people still want to play with toys. They just don’t want to play with our toys as much as they used to.

Rather than blame our cousins in the gaming industry for our pain; or rend our garments over last year’s safety recalls; or pin this year’s problems on the current economic conditions; I think its time we looked hard at ourselves. Something is wrong and we need to change it. We can change it.

How does an industry transform itself? It’s not easy, but it all starts with the self awareness that comes from all of us talking to each other honestly and without fear about not how we see ourselves but how we are seen by others. In particular, how we are seen by our end users; children and those who care about children.

It is with this in mind that I will, over the coming weeks, be taking a look at different aspects of how we conduct our business; not to lay blame but to try to understand where we are, how we got here, and what we need to do to become, once again, a growth industry.

I am only one voice. What we need is a dialogue and I hope you will engage me in one. I welcome your comments, questions and challenges.

Let’s talk.

Posted by Richard Gottlieb on January 20, 2009 | Comments (2)

January 22, 2009

In response to: Let's Talk
Nate Scheidler, Chicago Game Design Grou commented:

That's a great point, Jason. It was certainly echoed in my most recent design group meeting, where we welcomed two video game designers. I had a number of designers expressing dissension, and I had to reinforce the validity of the video game industry as a viable model for delivering traditional games.

Its a question of best method of delivery. For instance, I once met a musician with a very interesting method for playing the guitar that included taps in specific locations on the guitar's body. The performance was marvelous, and I purchased the CD. However, I discovered that the listening experience was greatly diminished without the presence of the artist.

While the industry should be mindful of emerging technologies, it should resist the urge to jump on the bandwagon without careful consideration of the best medium for delivering the experience.

January 20, 2009

In response to: Let's Talk
Jason Goodman commented:

Hey Richard, Great entry. My company is a small toy invention studio in Toronto called Cieo Creative Inc. Because we're small and anxious to make a big splash in the industry, we're always focused on innovation & taking the toy industry into its new area. We really believe in the potential of web-enhanced toys & games, however, most companies I speak with are hesitant to expand into an area that they're not familiar with. Fear of the unknown I suppose. I find this situation analogous to the history of music and new genre creations. Everything is a combination of everything else that came before. I think its time for the toy industry to open its mind to emerging technologies in a big way if it wants to stay relevant.