According to the authoritative NPD Group, in spite of numerous recalls and less than stellar economic conditions, U.S. retail sales of toys generated $22.1 billion in 2007 compared with $22.6 billion in 2006--a decline of just 2%.  Sales of Dolls dropped 8%, while the recall-sensitive Infant/Preschool category declined 5% as did sales of Outdoor and Sports toys.  These declines were partially offset by sales of Action Figures and Accessories, which rose 8%, and vehicles which gained 6%.

Licensed toys represented 27% of all toy sales in 2007 with Pixar's Cars, Disney Princess, Dora the Explorer, Spider-Man, and Star Wars the leaders among licensed toys (Transformers is technically a Hasbro property so it didn't figure in this category in spite of the fact that the Transformers movie undoubtedly drove sales of Transformers toys, and Hasbro's CEO Alfred J. Verrecchia called Transformers 'our leading brand' in 2007 -- see 'Transformers Drive Hasbro Sales').

For the first time in several years the percentage of toys sold via the Mass Merchant/Discount channel did not increase, coming in at 55%.  Online toy sales grew by 9 % and represented 7% of all toy sales in 2007.

The major new trend that NPD spotted in 2007 was the major growth in sales of toys that come with Web connecting features.