Mattel hoping for extreme Elmo sales

Stacey Vanek Smith Sep 20, 2006
HTML EMBED:
COPY

Mattel hoping for extreme Elmo sales

Stacey Vanek Smith Sep 20, 2006
HTML EMBED:
COPY

TEXT OF STORY

BOB MOON: After months of build-up, Fisher Price has released its new Tickle Me Extreme Elmo doll. Parent company Mattel has high hopes for the little red fur-ball, but some are skeptical. Here’s Stacey Vanek-Smith:


[ Ha-ha-ha that tickles! ]

STACEY VANEK-SMITH: Forget that adorable giggle. If you tickle the new Extreme Elmo, he’ll roll on the ground and pound his fist on the floor.

Mattel is counting on him to pound up holiday revenue.

Sales of Mattel stalwarts like Barbie and Hot Wheels have been slipping for years and the company posted major losses in 2005.

So will changing Elmo’s giggle to a guffaw help fuel Mattel’s turnaround?

Some industry analysts say no, kids are turning away from traditional toys and toward video game consoles.

Many think the world’s largest toymaker should focus its attention on the high-tech game market.

Over the summer, Mattel did dip its toe in that sector, acquiring Japanese techno-toy firm Radica and unveiling its own hybrid video-game device.

I’m Stacey Vanek-Smith for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.