Mattel: Some (Re)Assembly Required

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    That's bad news in an industry that relies on hits to get kids and parents into the stores. This year, for example, Hasbro and retailers were betting on products licensed from Star Wars' prequel Phantom Menace to drive sales into the crucial fourth quarter, which accounts for half of all toy sales. However, the force has not been with the Star Wars line. "It was very strong in May and June, during the movie's release," says Leslie Rauch, a senior buyer for Target stores. "But since then, it's become nothing more than a boy's action figure." Schwarz of Rumpus Toys says the response from the big toy companies will be to spend millions more dollars on licensed merchandise tied to movies. "That way, if they fail, no one can blame them for making a mistake."

    But look at some of the hit toys of the past few years--Super Soakers, Air Hogs, Beanie Babies, Furby, even Gus Gutz. They came from small companies with no movie licensing tie-ins. That's bad news for Mattel's Barad. She needs a hot toy this holiday season more than any six-year-old does. Otherwise, the only thing Barad may get for Christmas is fired.

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