Traditional toy sales may drop in 2005, with 5% sales declines through the third quarter, according to NPD Group, and little to indicate that sales came back in the fourth quarter.  A Piper Jaffray & Co. analyst quoted by Bloomberg predicted a 2% decline in game and toy sales in 2005.  Sales on various forms of electronic entertainment continue to grow. 

 

Whether these macro trends affect sales by pop culture retailers, whose toy sales are of licensed goods sold primarily to collectors, is doubtful; but they do definitely affect the manufacturers, and the products they make.  Both Hasbro (see 'Game Sales Lift Hasbro Earnings') and Mattel (see 'Mattel Slumps in Q3') had lower than expected earnings in the most recent quarter.