N.Y. Times: Even the Toy Industry is Worried about the iPod

Authored by Mark Hefflinger on October 13, 2005 - 4:07am.

New York - The New York Times on Thursday published an overview of how the latest offerings in consumer electronics are influencing the toy industry. One challenge facing toy manufacturers and merchants is the trend that children are becoming captivated by the digital “toys” of their adult parents, like the iPod. Thus toy companies are aggressively partnering with consumer electronics vendors to provide a wide range of digital toys in time for the holiday season, such as: cell phones; digital video cameras; MP3 players; and DVD video projectors. "This is the year when we will see what works and what fails," said Anita Frazier, of the NPD Group. Her research firm reported that sales of children's electronics rose 40 percent in 2004, to $694 million, which may be a leading indicator that offerings from toy stores and consumer electronics retailers will soon overlap.
http://www.nytimes.com/2005/10/13/technology/13toys.html