Competitive Analysis of the Global Toy Industry

Competitive Analysis of the Global Toy IndustryWelcome to the biased world of teddy bears, singing dolls, miniature pianos that play nursery rhymes,battery operated cars and stuffed dogs and rabbits that walk, talk and shake hands. In one(a) word Toys.Toy merchants of yester years gave do to the creative fancies and dreams of young ones and growupsalike.The world securities fabrication has assimilaten divers(a) upheavals delinquent to changing consumer preferences, advanced fads,technological advances and trade liberalization. Countries like China bewilder marveled the world with their commencement cost manufacturing expertise while at the same beat astonished them with their quick imitation,leading all the gigantic players of the world to act on their feet and articulate strategies to counterattackthem and safeguard their sh ars.India too has seen a shift in focus from traditional board plump fors like Chess (Shatranj) and Ludo (Paasa)and sports like cricket to video g ames and consoles, puzzles, and Monopoly. The traditionally scattered commercialise has shown signs of consolidation with the entry of companies like confidence ADAG and Mahindra Mahindra who argon both expanding the foodstuff and add uping sheen to it. India as a developing economyis a hotspot for MNCs like Mattel and Hasbro which expect now reverse household names with Barbieand Monopoly respectively.Big retailers of the world which exclusively cater to this segment include Toys R Us and Hamleys, whichhouse the best brands of the world and add a service dimension to fiddles.This document discusses the various classes of wreaks, the current global scenario for encounters, how China hasaffected the global toy industry, Indias market and its harvest-tide prospects.CATEGORIZATIONToys and games can fall in one of four general categories-1. Traditional toys the category is essentially stagnant with 6296 makers and the growth cosmos consistent over the years. In 2007 revenues w ere $21.2.billion (US Market) and $22.3billion in 2006. It includesAction Figures Accessories (G.I.Joes)Building Sets (Lego Sets)Dolls (Barbies)Games Puzzles (Monopoly)Plush (Soft Toys)Vehicles ( ragingWheels)2. Video games one of the fastest growing segments with revenues of $18.9 billion which is 51,2%higher than its 2006 revenues. It includes- offspring Electronics (PS2, X-Box)Gaming Parlours (Jammin, TimeZone)3. Casino Games Slot machines were introduced by casino games manufacturers which haltultimately benefitted the video game industry. Mostly offered by hotels.Toy Industry Present and the future tense tense 2010KJ Somaiya Institute of Management Studies interrogation4. Accessories and new(prenominal)s Includes traditional games including sports items and educational toysfor infants, which is in like manner a fast growing industryGLOBAL SCENARIOThe US, China and Japan rank among the sack 3 countries in terms of toy sales worldwide their salesbeing US$21.5 billion, US$4.9 billion, and US$5.8 billion respectively. Other countries with a remarkabletoy sector include Germany, Brazil, France, India, Australia and Canada. Though the recession influencedtoy sales, the sector did witness growth of about 3.6% with sales r distri stillivelying $80 billion.The worlds largest toy manufacturer and exporter China makes 2/3 of the worlds toys the exportvalue of Chinese toys in 2009 was US$7.8 billion. Guangdong, Zhejiang, Shanghai, Jiangsu and Shandong be the fore virtually production and export bases for toys in China, accounting for more(prenominal) than 90% of the annual sales of Chinese toys.Chinas plush toys enjoy a large sh ar of the come sales in European American market. scarce the low termss are also responsible for a low profit margin. However it entails high labor costs and thereforemanufacturing costs are clean high. Wooden toys also have a significant share of 10% and fictile toysare suffering due to the continuously rising price of b are materials, quality and safety issues, etc. Chinasintellectual toys too have a broad prospect, but relevant standards need to be released so as to reassure the healthy development of the market.In 2009, in pace with the upgrading of technology, the toy export industry has witnessed severalchanges developed countries have diverted their demands of toys to toys such as big(p) toys, high-techelectric toys, intellectual educational toys from traditional medium and low-grade products like plastictoys and stuffed toys. Electric toys and online toys produced with high new technology have becomethe new development orientation.MAJOR PLAYERS WORLDWIDEMattel Inc.- Mattel sells products under a host of well-known brand names suchas Barbie, Matchbox, Fischer Price, and Hot Wheels.Hasbro - Produces favorite board games such as Clue, Monopoly, and Scrabble. Its otherproducts include the Transformers, Mr. Potato Head, Play Doh as well as licensing agreementswith brands such asStar Wars and Marvel.JAKKS Pacific- Produces traditional toys under licenses for brands such as Cabbage PatchKids, Care Bears, andHannah Montana, a particularly big earner for JAKKS in 2007.Other big names include Russ Berrie and Company, RC2, Action Products world-wide andCorgi International.Toy Industry Present and the Future 2010KJ Somaiya Institute of Management Studies ResearchTogether, Mattel Inc. and Hasbro Inc. have less than 40% of the market, which analysts expect providegrow at a compound rate of roughly 2% annually.INDIAN SCENARIOCurrently there are about 800 Indian games and toy manufacturers, exporters and suppliers in the smallsector of India, with a turnover nearly $2.5 billion. This includes manufacturers of electronic toys, softtoys, educational games, toy cars, rattles, dolls, plush toys, calculating machine games, brain teasers, squirtrenpuzzles etc. The total toys and games market in India stands at around Rs.2500 crore, of which Rs.250crore is in Chennai.Total Market S ize Rs.2500 croreMarket Structure 35% Organized Sector,65% Unorganised SectorDuties and Taxes Excise Duty 12.5%CST(Central gross sales Tax) 4%Global Export Contribution 0.4%Governing Body Toys Association of India (TAI)Compared to European and American games and toy markets, Indian toy volumes are really low, in the mainbecause toy obtaining is a relatively urban phenomenon. Most toy manufacturers are from theunorganised sector, who in turn sell their toys and games to big traders who market these toys.The total export market for toys and games is around Rs.18 crore. The export volumes are low becauseof the quality norms abroad. Manufactured toys for export have to conform to EN 71 norms, theEuropean standards. The toys have to be non-toxic and safe to sell abroad.$0.00$5,000.00$10,000.00$15,000.00$20,000.00$25,000.002009 (Million $)2009 (Million $)Toy Industry Present and the Future 2010KJ Somaiya Institute of Management Studies ResearchMattel, Lego and Funskool are three of the major players in the Indian toy industry. The toys and gamesavailable in India are a mix of both fun toys and educational tools. They include dolls, puzzles, electronicgames, handmade toys, soft toys, board games, com spewer games etc. Indian wooden toys are of goodquality and comparable to international standards. The demand for fun toys is greater than that ofeducational toys since parents usually prefer buying educational toys for their children.MAJOR INDIAN PLAYERSZapak Games It is a part of the Reliance Anil Dhirubhai Ambani Group. Zapak Games operates in twocategories Game CD Toys. It is the leader in Games CD in India. It holds licenses for leading kidsproperties from Cartoon Network, Nick, Disney, Pogo etc as well as represents whatsoever of the leadingglobal toy companies in India.The product distribution is across all toy stores and retail chains in the country through the traditionalmom n pop outlets as well as large format anchor account stores. We had the oppo rtunity of seeingsome of these toys with Landmark outlets across the city. It acts as the merchandizing and licensing arm of Zapak Digital Entertainment Ltd. They are also in an association with crack Master Ltd. which accordingto NPD is the third largest toy company in North America.Mahindra and Mahindra Mom Me outlets across the city are operated by Mahindra which hostseducational toys for children. It also has the market rights for Lego brand of toys and soft toys fromDisney.Some small players arePrasid Toys Pvt Ltd. Delhi basedLittle Genius Toys Ltd. (Wooden Educational Toys)Leo PlastEFFECT OF CHINA ON INDIAN miniature INDUSTRYFrom a 2,000 players a few years ago, barely 800 survive today, it is desired that nearly 40 per cent oftoy companies have shut sell since Chinese products started flooding into the Indian market. Even asthe unorganized sector has been most hit, some of the other players like Mattel, Funskool (joint venturebetween MRF Tyres Hasbro Intl), Mahindra Intertrade (markets the Lego and Disney get down of toys)and a few others are forced to fight back with a string of innovative strategies.Compared with an average Rs 35 per kg a Chinese toy maker spends, an Indian manufacturer spends Rs65 per kilogram for raw materials. High excise duties and taxes including local taxes that vary greatly addto their woes.Indian companies have non made efforts to market their products in a planned manner and while someIndian companies are trying to combat the threat from Chinese toys by slashing prices by 10 to 15%others are strengthening their distribution skills in smaller towns, where the reach of imported toys isstill limited.INDUSTRY GROWTHFinding the right turning point trade limited to premium segmentIndian consumers are gradually becoming less price sensitive, but are ready to pay for something theybelieve has a value proposition. They are certainizing that toys support in the all round development of a child.Take the $6-billion Matte l Inc. for instance, after a run extraneous success with Barbie, Hot Wheels and FisherPrice, it has introduced the Harry Potter range of toys which caters to the premium segment. With itsFisher Price range, Mattel is also launching developmental activities along with toys associations,pediatricians and playschools to educate parents on how toys help the child in understanding the adultworld better.Glocalization Go Global Act LocalAlmost all major players, have launched an indigenous range of competitively priced soft toys range, tocater to the growing market. Mahindra Intertrade, for instance, launched Soft Wonders, to cater to theeconomically sensitive customers. Similarly, Mattel has launched Star Beanies for Indian market andFunskool has launched soft toys.Act Faster than the FastestThese players have also spruced up legal activities against spurious products and taken marchs to makethe vigilance stricter. They try to bring in designs faster than the Chinese can imitate. For in stance, oncethe market gets flooded with fake products with Mickey or Donald motives, be it on cups, bottle, plates,tiffin boxes etc, Mahindra Intertrade would quickly launch Mickey in sports split and shift the demand.Such marketing skills a range of strong brands have enabled them withstand the Chinese threat andallowed them to play a crucial role in growing the market.TRENDSOnline BuyingIn 2004 when Mattel registered on Indiatimes, Rediff and Baazee, they discovered that when kids didnot look for toys online, their parents (on the lookout of discounts) did. Also online shopping for toysaccounted for approximately 2% of total sales, that is Rs 21.24 crore in 2005-06.$74.00$76.00$78.00$80.00$82.00$84.002007 2008 2009 2010$78.30 $77.50$80.28$83.90USD (Billion)Mall practiceMalls are an overt blessing for the toy makers. In a mall one gets better shelf space to exhibitproducts, and the entire range can be displayed with the add ons which then have a good chance ofbeing exchange to t he potential customers. Better sales tracking is some other advantage one gets from themalls. In 2005, Mattel opened two 1,200 sq ft Barbie stores in Mumbai. Approximately 35% of the salesfor Funskool and Mattel take place at the malls.Fusing Entertainment with toysMattel has produced five movies to promote its existing range of toys, whereas Funskool, its rival hasbeen using existing movies like batman to create a new range of toys for itself.Toys for MenMattel has also launched toys for men. It featured models of premium cars including BMW 645 Ci,Ferrari Scaglietti and Williams and Renault in its Hotwheels Collectibles having a price ranging from Rs999 to Rs 1,999.Changing Demo artDemographic variables like greater divorce rates, due to which kids get two hardeneds of toys increasedbuying power per child due to 2 income families and increase involvement of grandparents are allinfluencing the growth rate of the toys.THREATS/HINDRANCES/CHALLENGESRaw Material CostsThere is a stand out in the raw material costs, due to an increase in the manufacturing costs fortraditional toysManufacturing CostsMost of the traditional toys are made from plastic resin. Petroleum, whose price is continuously increasing, is oneof the main components of plastic resin. This has a negatively impact on the manufacturing costs .Changing Consumer preferencesNowadays, customers prefer electronic games to traditional table games. This trend is not beneficial forthe traditional game equipment manufacturers.Revenue of the Video Games Industries and Traditional Toys ($ in billions)Industry 2004 2005 2006 2007Video Games 9.9 10.5 12.5 18.9Traditional Toys 22.4 22.2 22.3 21.2Toy Industry Present and the Future 201010KJ Somaiya Institute of Management Studies ResearchIn India, toys arent perceived as developmental. So toy manufacturers take advantage of impulsepurchasing trends and the pester power of kids flora in advantage for the toy manufacturers.Indianparents perceive expenditure on t oys as a waste of money. Educational games like Scrabble and toys forpre-school children and infants are an exception to this belief.Impact of RecessionOnly when the consumers have enough disposable income to afford luxury goods, they buy toys. Astruggling U.S. housing market, rising oil prices and other factors have limited their income. The toyindustry was also affected by this trend, as its overall revenue decreased.Declining profits due to emphasis on product safetyProduct safety is another major concern of the toy industry. This was discovered when there was a risingnumber of product recalls in the second half of 2007. So while companies put more focus on their highermargin core brands, the positive margin implications from this shift are offset by quality and safetytesting, as well as higher costs for raw materials.Competing with large brandsSmall manufacturers which form the bulk of the unorganized sector are unable to brand and markettheir products, which has been a critical disadvantage for them. With a large number of players in themarket, plainly the international brands have a strong brand recall. Here, manufacturing competency isntthe real concern since most of the branded players outsource their requirements from Indianmanufacturers. However, lack of marketing acumen and an expertise to cultivate brands is found to belacking in most indigenous companies.NEW STRATEGIESCoupling toy launch with movies and vice versaTransformers, Shrek, etcArt Attack a Television series by Hit Entertainment has also entered the toy market. It showcasesDo-It-Yourself arts and crafts in their videos and has now made them available in DVD formatsacross major stores. They also merchandise their creative works through books.Cradle catching In 2005, Mattel entered into a partnership with diaper brand Huggies. By thismove, Mattel targeted its potential audience at their birth place, and even out front they wereborn at the maternity homes.When the mothers visit the doctor for the first time, they are givena medical file, as well as well as the entropy on the different phases that a child is likely topass through as it grows which helps in selecting toys from the Fisher Price range that fits eachgrowth phase ie. crawling, sitting, standing, etc.Within a very short period of time, they claimed to have targeted 600,000 mothers by having tieups with 300 pediatricians and 50 gynecologists, across the pop off sixer Indian cities. Also, anotherinnovative technique employ by Mattel is a toy directory which is dictated in retail outlets thatinforms parents about the best toy for each age group.CASE ANALYSIS TOY INDUSTRY AND BUYING TRENDSCASE 1HAMLEYS, PHOENIX MILLS MALL, LOWER PAREL, MUMBAIHamleys, the worlds iconic toy maker from UK, has set up a 21000 sq ft outlet spread over three floors inMumbai, its first branch in India through franchise agreement with Reliance Retail. The tie-up is valid for20 years. The company plans to invest Rs.150 crore in the next seven years to set up 20 more storesacross the country, including tier-II cities.Brands Other than Hamleys own-brand range of toys, imported brands such as Mattel,Hasbro, Disney, Fisher-Price, Playmobil, Leapfrog, Mecchano ,, Scalextrics, Hornby, Maisto,Burrago, and Lego are also present in the store.Segments The shop has been split up into segments catering to infants, young boys girls,teenagers and adults.It has a Barbie Doll category and Barbie Salon and Spa for young girls.Grand Racing Track for RC Cars, London Double Decker Bus, Safari Jeep for young boys.Petals Pods-Play area and Bear Tree stand are for infant and pre-school children.Science Molecules, Candy Shop, Disney Castle, Experiential gaming stations, Party roomsarea are for teenagers.A KodakExpress studio has a shop-in-shop strategically placed in the center of the shop tocapture moments at Hamleys.Prices The price varies from as low as Rs 200 to as high as Rs 30,000 depending upon therequirements and pre ferences of the customer. Most products are priced on the higher end ofthe spectrum retentivity the affluent urban folk in mind.Age Group It caters to infants, young boys and girls and teenagers. Board Games are popularwith adults also.MANAGERS VIEWSThe shop is one of its kinds in Mumbai, since it is an exclusive toys only outlet with all kinds of toysunder one roof. The trends noted by them are that parents are more interested in buying toys andgames that offer educational value to their children and children too are more interested in games thatoffer intellectual stimulation. Children have moved from the traditional sports of cricket and kabaddi togaming consoles and Scrabble. Also adults are a growing segment with them fraying towards traditionalgames such as Mancala a French board game, Monopoly, and fire hook for which they buy Poker chips.Workshops are organized to engage the children and merchandise related to new films are sold everynow and then to offer something new t o the customers.CUSTOMERS VIEWSCustomers always draw it a delight to visit Hamleys since it offers so much variety . A few of thecustomers unspoiled come with their children to provide some entertainment and spend time in the shop.They appreciate the display of the store and the hygiene maintained in the store. Also, though a fewproducts were manufactured in China, they didnt mind buying them if they were sold in Hamleys sincethe name offered credibility to the product. The range and variety of toys offered by them is alsounmatched.ANALYSIS COMMENTSLayout The layout of the store is very carefully planned with the store being divided into a girls subdivisionand a boys section. Educational board games, interior decoration kits and games for adults are placed inthe center of the shop. The section which caters to toys for toddlers is separate, and the floor aboveonly houses gaming consoles, CDs and educational books.Staff A large number of staff take care of the customers needs and are specially trained to provide entertainment to their most important consumers the kids The manager himself caters to customersand entertains all doubts and queries to help them purchase what best suits their requirements.Store Aesthetics and marketing A lot of effort has been taken to recruit the visual appeal of the storethrough visual merchandizing and display walls. Most toys are displayed and little remote controlledcars and helicopters zoom in and around the store some of them hovering above ones head or newcars that stick to the walls. The store has a facility for gift wrapping their products, and children andadults alike are allowed to touch and operate various toys in the store.CASE 2MOTHER AND ME, R CITY MALL, GHATKOPAR, MUMBAIMother Me is a Retail store owned by Mahindra Group, which caters to the need of Pregnant women,infants, toddlers, pre-schoolers learners. Its toys section is spacious and is gaining popularity day by day. pursuance are the details of its toys section-Brands-Fischer price, Funskool, Mattel, Lego, Disney V-techSegments-Soft toys, Wooden toys, Metal toys Plastic toysPrices- 350 5000Age Group 0 9 YrsMANAGERS VIEWSFollowing are the points which Store Managers told us.They prefer to keep toys of price range 350 to 5000.Mother and Me use SAP for inventory replenishment.They have kept the toys according to their type (wooden toys at one place soft toys at anotherplace) rather than age group wise (toys for 0-5 yrs at one place).According to them toys which are able to conjoin to Indian traditions are highly in demand, eg.Indian Barbies.Maximum complaints they receive are against Chinese toys and toys manufactured in China.CUSTOMERS VIEWSWe received the following feedbacks from customers.Most of them buy toys once a month.Fishcer price is preferred by most of themMost of them prefer plastic toys over metal Wooden toysMost of them are not in favour of Chinese toys despite of the low of cost.Most of them were in favour of int eractive toys.Some Customers stressed the need of toys, which inculcate the values indispensable in humansociety were against the toys, which resembles the violent figures or creature.ANALYSIS COMMENTSFrom the information provided by store Managers feedbacks from customers we analyzed that the Toy Industry has a bright future ahead but only if it meets the challenge of providing better quality Interactive toys, which not only make learning easy but also help in cultivating thevalues necessary in human society.Light weight Plastic toys as they are easy to handle more resistant to wear tear.Value for money, as most of the parents feel toys overly priced.CASE 3LANDMARK, PHOENIX MILLS MALL, LOWER PAREL, MUMBAILandmark is a one s top destination for s hopping for toda ys youth. It consists of books, s tationery,garments, merchandize, music, toys, movies, gaming, Technology products and other gift items.Brands -There were various brands present in the store and a few of them are as follows Mattel,Disney, Fisher-Price, Zapak and Lego are also present in the store.Segments The shop has been divided into segments where toys for infants, young boys andgirls and teenagers can be found. It also has a sports section and board game section.Prices The price varies from as low as Rs 200 to as high as Rs 15,000 depending upon therequirements and preferences of the customer. The pricing is not exorbitant in Landmark andmost of the toys are priced by keeping the Indian customer in mind.Age Group It caters to infants, young boys and girls and teenagers. Board Games are popularwith adults also.MANAGERS VIEWSMaximum profit is generated from the infants toy section of the store. Selling one item from the infantsection is equivalent to selling 3-4 items from the others sections. Boys prefer hotwheels,cricket kit andboard games and girls are still hooked onto Barbie dolls. Toys are imported from France and Germanyand most of them are made in India.CUSTOMERS VIEWSToys are idea l gifts for young children and they dont even cost a fortune when it comes to buying them.Customers dont mind paying for the latest and most popular toys for the kids.ANALYSIS COMMENTSLandmark has been doing a good job of catering to the growing toys market and plans to introducemore imported toys in future. The Sports goods have a bountiful place in Landmark and a lot ofimportance has been given to the sports and board game section. incoming OF TOYSPredicting the future is never easy. The future of toys specially very difficult to predict . You never knowwhen an old favorite toy will make a sudden resurgence into the mainstream or a new technology willbring about yet another revolution in toy technology.Generally speaking, video game consoles would predictably always rising to the top of wishlists. However, classic toys often come back to take over the lists for top toys. In recent years, weveseen old comic book characters and process heroes rise to the top again after being in the bottom ofcomic bins for years. This years Iron Man 2 brought back an old action favorite, and action figures andcars are available with an Iron Man twist. Other movies like Transformers have done the same.Old favorite cartoons are also being brought to the forefront. A few years ago, a new Teenage MutantNinja Turtles movie in CGI was released, and this past year, Transformers were all the rage. It wouldntsurprise me to see He-Man or the Thundercats rise up to become live action or CGI movies themselves.If they do, expect them to corner the toy market after the movie is released.It would also be prudent not to underestimate the power of toy fads that are still dismission strong even 12years later. Pokemon first got big in 1998, and has been a huge hit with video games, compete cards, andT.V. shows ever since. It has been hard for toy manufacturers to dethrone Pokemon, because its such ahuge hit among kids and even young adults who grew up playing the game. Its very possible th at itcould last for another 12 years or more. (What do you think of Pokemon?Indeed, toy inventors are pushing the boundaries of artificial intelligence, speech synthesis, piano tunercommunications, and networked virtual reality. Whats more, they are figuring out how to cram hugechunks of realistic graphics, dialogue, and sensory cues onto tiny, inexpensive computer chips. The toyindustry is really at the pardon of technology for the limits it can go to. There are only so manyinteresting ways for them to reinvent dolls like Mr. Potato Head onwards kids are no longerinterested. Dolls like Furby were a step in the right direction, but the fad did not last for verylong. Technology operative its way into the toys of the future will bring in a wider audience of interestedkids, but it has to be directed at toys that are more than scarce popular, but are fun too.The future of toys is bright and exciting. Any new innovation could shape the kinds of toys kids playwith. You can bet that t he toys of the future are going to have something of the past, however.AUGMENTED REALITY JET FUEL FOR THE IMAGINATIONThe future of toys almost undoubtedly belongs to augmented reality.Mattels i-Tags, will use Augmented Reality will be included with action figures the company will makefor Titanic director James Camerons blockbuster film, Avatar.Augmented reality is an overlay of digital information or imagery on top of real-world objects.WIKIPEDIA Augmented Reality is a field of computer research that deals with the combination of realToy world and computer-generated data (virtual reality), where computer graphics objects are blended intoreal footage in real time.Think about it. The possibilities are just about endless, and could mean a whole new flavor for the kinds oftoys that kids at first play with a lot, and then quickly abandon. By embedding special software in imagery that can be placed just about anywhere on a toy, toy makers will now have an incredibly widerange of virtual things to add to their physical toys.TOYS OF THE FUTUREELECTRIC POP UP BOOKSElectronic Popables by Jie Qi is a pop-up book that lights up as you interact with it, producing the mostbeautiful and dynamic pop-up pages ever. As you begin to go flip through the book open pages, pulltabs, press pressure points and fold objects different LED lights will blink away on all over the page. Theycan be a very efficient means of connecting holistically with the technology savvy kids.HORIZON HYDROCAR TOYThe hydro car is a case in point. It does not depend onbatteries or electricity. Surprisingly this car producesits own energy, running entirely on water. It is not onlyHydrocars functionality, but also its trendy, scientificdesign that sets it apart.SCRIBBLE BOTSScribble Bots is just a concept at the moment, but the idea is that childrencan connect with their friends through the prescribed website and share theirdrawings, artwork and also the artistic process. The Scribble bots toy canrecord and recreate movement so anyone with a scribble bot can downloadyour drawing and their scribble bot will draw it right for them, then andthere.TOUCH SENSITIVE VIDEO GAMESUsually, a lot of people do not see any fun in playing withbuttons and joysticks. This concept of touch sensitive gamesemploys touch sensitive silicon that simulates the terrain in agame, empowering the users to feel their way through. Nomajor video game manufacturers are using technology quitelike this as of now, but we could see such technology beingused in the future.PARROT AR DRONE QUADRICOPTERFlying helicopter toys meets handheld video games with the ParrotAR Drone Quadricopter. This isnt a simple chopper that wing aroundthe corner and crash because you cant see it. This device has abuilt-in camera that lets you see everything from an iPhone or othersimilar smart phones. Since joysticks are outdated, this toy usestilting gyroscopic controls, tilting the AR Drone as you tilt theiPhone.MINDFLEXRemote controls are a thing of the past. Toys of thefuture use mind control Mindflex is a telekineticobstacle course that uses brainwave activity to move aball. Were not really sure how it works, but we like tobelieve its because we have sci-fi like mental powers.MILOThe next biggest innovation in the toy world does notbelong to the genre of barbies or remote controlled cars orthought controlled machines, but a virtual best friend. Bylate 2010, Microsoft would release a new add-on for theXbox that will replace contr