• Reuters, Monday, February 16, 2009 10:45 AM

It's tempting to write that at least there's one place where it's still all fun and games out there -- the New York Toy Fair, which opened Sunday at the Jacob Javits Convention Center -- but, alas, that's not the case. "The toy category, usually expected to weather economic downturns better than others, also took a hit and many in the industry worry when their consumers will return," writes Aarthi Sivaraman.

To be sure, there's an Obama action figure; a new, electronic Rubik's Cube with touch sensors, and Legos that sport digital cameras and MP3 players. And Soren Torp Laursen, president of Lego Americas, says "despite tough conditions, there is good business to be had for us." He announced a multiyear licensing deal with Walt Disney Co.

Mattel, which faced an 11% sales drop in the past quarter, is betting on Barbie, Elmo gloves and a grown-up Dora the Explorer. Rival Hasbro has its hopes pinned on G.I. Joe and Transformers toys that will follow this year's summer movies, after a 5% sales decline in the fourth quarter, Sivaraman reports.

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