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Microcap & Penny Stocks : ITOY - Imagin.Net and Virtual Games, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (53)	2/20/1999 9:34:00 AM
From: sandstuff	Read Replies (1) \| Respond to of 340

Lots of stuff going on in the toy market that will not only affect toys but other consumer areas. Interactivity is the key. It will be pc and NON pc based. Totally new markets will develop. (Hence Microsoft) Hint: Voice Microsoft Turns Teletubbies Interactive (01/04/99, 1:57 p.m. ET) By Paula Rooney, Computer Retail Week Tinky Winky, Dipsy, Laa-Laa, or Po will soon join Barney, Arthur, and D.W. on the shelves of computer retail stores. Microsoft plans to debut new ActiMates toys based on the popular Teletubbies television characters in the first quarter of 1999, sources said. The characters appear in a PBS series created to enhance early learning. "It's going to be even bigger than Barney," said a retail source who asked to remain anonymous. "They're aimed at 1- to 5-year-olds. The ActiMates are based on the hottest show on TV." Microsoft's ActiMates, Mattel's Talk With Me Barbie, and Hasbro Interactive's Winnie-the-Pooh are among the most popular products in the growing digital-toy market. A sales associate for Best Buy in Framingham, Mass., said demand for interactive toys is strong. "ActiMates have been selling like crazy," he said. Microsoft has helped sell-through by slashing prices of its ActiMates from $99 to $49. Although growing, the interactive-toy industry remains in its infancy. Analysts said they predict the market will grow quickly during the next few years as these "network" toys incorporate more advanced content and new technologies, such as voice-activation and recognition. Forrester Research, in Cambridge, Mass., said it predicts the network toy market will grow to $352 million in 1999, up from $200 million this year, and will skyrocket to $1.9 billion by 2002. Network toys connect to a PC or other devices to retrieve CD-ROM content. Over time, analysts said they expect toys will connect to a variety of digital devices, including televisions and digital cameras, to access content. Meanwhile, vendors are working to improve the toys' audio quality and content, to reach children in wider ranges of age. For example, Mattel recently purchased The Learning Company to gain access to TLC's vast CD-ROM collection and educational content. "The network toy vendors are adding new content beyond the basic stuff, such as adaptive content that learns along with its owner," said Seema Williams, an analyst at Forrester Research. "For kids learning to read, the words will get harder and the content will constantly evolve, so it extends the life of the toy." Microsoft would not comment on upcoming products, but one official disclosed directions for the future. Steve Schiro, vice president of Microsoft's end-user customer unit, said the ActiMates manufacturer is investing heavily in voice technology to improve children's play and learning experience. The market is attracting new players. Mirvo Toys, in San Mateo, Calif., is developing a series of network toys that also make playful use of the home PC. The company, which spun off from Interval Research in February 1998, has patented technology that brings toys to life with the sound and animation of CD-ROM software. Mirvo plans to debut three new products -- two original characters and one based on a license -- at the Toy Fair in February, said Amy Francetic, vice president of product development at Mirvo. She declined to provide details, but said the "play" devices connect to PCs and enable users to move multiple pieces on a game space with automated sound, animation, and scoring. "It's not interactive plush," Francetic said.