Thirty years ago, kids couldn’t get enough of their favorite toys. From GI Joe to Cabbage Patch Kids to Speak & Spell, the American-made toy offered a quality, visceral experience that empowered kids to explore their imaginations.
Today, most of the games that children over age 6 play with are either on smartphones or gaming console. Sure, kids still have Barbie and Hot Wheels, but traditional toymakers are fighting tooth and nail to grow while software companies are reaping billions in profits.
According to a recent study by Common Sense Media, in 2013, 38% of kids under the age of 2 (yes, 2) used a smart device to watch video, play games or engage in other media. That number jumps to 72% for kids under age 8. And the average amount of time spent on these devices per day has tripled in the past two years from five minutes in 2011 to 15 minutes in 2013.
Mattel’s (NASDAQ: MAT) earnings struggles are a testament to this trend as the company struggles to maintain its relevancy and profit growth in this highly competitive industry.
Following a disappointing….READ MORE HERE