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Video Games Back at Top of Shopping Lists

December 03, 1996|From Associated Press

NEW YORK — He flies, flounders and flips, and his fancy footwork is turning Super Mario 64 into a big hit this holiday season.

Running on Nintendo's new video game player, Super Mario is one of the most sought-after toys this Christmas, along with Pilot Wings and Mortal Kombat Trilogy, two other games for the just-released Nintendo 64 system.


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"Video games are coming on strong this year," said Gary Jacobson, an analyst at Jefferies & Co. in New York. "That's generating a lot of excitement for toys in general because it's bringing more people into the stores."

That may mean strong sales for other toys on kids' wish lists, including Barbie, Star Wars action figures, Goosebumps and anything tied to the new movies "101 Dalmatians" and "Space Jam." A barrage of classics from Monopoly to Mr. Potato Head are also expected to be big sellers.

After several years of soft sales, video games are coming back, led by the launch of Nintendo 64, which uses advances in computer chip and software design to create three-dimensional game play. The system costs about $200 in stores, with each game tacking on an additional $70 on average.

Sony's PlayStation and Sega's Saturn, while on the market for a year, are also popular and are helping to revive interest in video games. Both game players retail for about $200, with games costing an average of about $50 each.

While these high-tech systems are expensive, parents are already scrambling to find them in time for the holidays, and retailers are struggling to meet customer demand.

"There are no screaming gotta-haves this Christmas, but there are a few hot products that everyone will be going after," said Margaret Whitfield, an analyst at Hancock Institutional Equity in New York. "That's sending parents to stores now before stocks sell out."

That's a good sign for the toy industry, which depends on the fourth quarter for about 65% of its sales. Sales hit $20 billion last year and analysts predict that amount will grow by 4% to 6% in 1996.

"Unlike last year, the economy is pretty good right now and people are willing to spend," said Frank Reysen, editor of Playthings magazine, a New York-based trade publication. "That should make it a good Christmas season after a few lackluster years."

Mattel Inc.'s Barbie still reigns as the top-selling doll, with a few new looks this year, including pet doctor and scuba diver outfits. Holiday Barbie is having another big year, with inventories already low in some part of the country.

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