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October 2, 2012

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Comments

Philip Wrzesinski

Richard, as a toy store owner, I can respond somewhat to what these traditional toy makers are saying. It isn't so much that consumer demand is down as it is that available cash is down. Banks are cutting back on unsecured lines of credit - the money that many retailers would use to stock up heavily mid-year. Therefore, those same retailers are cutting back purchases, which toy makers might read as lack of demand. I think it is not necessarily a lack of demand so much as a lack of credit to stock up early. I know we have cut our inventories greatly through the first half of the year, yet our toy sales have remained steady. We are just waiting longer to do our big stock up for Christmas.

GamesGuy

Hi Richard,
Long time reader, 1st time commenter. Agree and disagree with your article.

Agree today's consumer has an abundance of play options yet it is the medium (web, mobile, console, board, card, toy etc) and the experience that it delivers that matters.

Video games have long chased blockbusters and sequels sacrificing game play and fun.

Zynga also lost sight of what was important and it became more of a chore then fun.

Major brands have failed to optimize the mediums and the numbers reflect it.

Deliver the best play experience across the mediums and consumers will play it.

Brian Torney

Hey Richard, I can't say I agree with your supply and demand assessment. Consider this: ample evidence suggests there are more people playing game than ever before, but audience is in flux between various platforms.

The video game industry is suffering from a continuing malaise that started long ago. Sure, there are big video game hits, but the market will only support so many of these hits, especially considering spiraling budgets. New hardware will help, but video game manufacturers must respond to changing gamer behaviors. Strengthen the base of hardcore fans by building casual gamers up the nerd ranks.

Similarly, traditional toys are suffering because innovation has stalled. Sure, there are some great toys out there! But broadly, manufacturers and retailers aren't providing innovative products capturing what consum,

Regarding Zynga revenues reaped via Facebook gaming versus mobile app sales, social gaming is in flux. Nobody has any evidence to suggest that social gaming is declining overall, just that certain platforms are in flux. Monetization is an issue here, but audience demand is certainly not in decline across the various popular platforms.

I'm not sure demand is in issue here. Gaming behaviors changed and video game manufacturers have, largely, failed to keep up. Similarly, Zynga's Facebook games have not grown and changed with the behaviors of users.

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Alerts: + indicates a climate of increasing financial uncertainty. + is bad. - is good

Sales Leads: An + indicates new retailers joining the industry. + is good. - is neutral.

References: + indicates a period of increased ordering from retailers. + is good. - is bad

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