Skylanders

[BaronHelix]

I don't recall anyone discussing these things here. I knew they were hard to get in the US, but it didn't even occur to me it would be worse globally. For those who don't know, they are toys that tie in to a video game via a scan-able microchip, advancing the interaction. There is an article on the Canadian woes here, but feel free to discuss them in general as well.

As an aside: scalpers are and always will be evil.

[wanderer]

These are the ones with the Spyro characters, right? Every time I go into a GameStop, people are looking for these. I didn't realize they were anything more than tie-in action figures. What do they do, exactly?

[StompyMcD]

My son loves this game, because of the effect a toy in the real world has in the game world. You can buy them at Toys R' Us in Times Square, but they limit the number to 2 a day, or one 3 pack a day...Not saying you can't just keep wandering in with cash, but they're only selling 2 at a time.

They're very fun, but yes, this shortage is believed to have been manufactured by Activision themselves to increase demand and collection value.

[TanRu]

But Activision doesn't make anything off secondary market (ebay, etc) sales. Wouldn't it make more sense to sell you (or Toys R Us or whatever) as many as they could if you have the cash to buy them?

(I'm not saying you're wrong, just trying to figure it out.)

I wonder if people will start figuring out how to read the chips inside and "bootlegging" them.

[StompyMcD]

Isn't my opinion, just something I read once. Toys'r'us has been out of these things for weeks at a time. I have to find the article I read about it a few months ago...was on Kotaku as I recall.

And yeah, someone did figure out how to hack a Skylander once. It's an RFID chip I'm sure someone can just clone one copy of and then you can toss them on the reader, without a figure, just to play the game, but...kinda dull, right?

[TanRu]

Here's some discussion about hacking it and what's on the chip.

[BaronHelix]

But Activision doesn't make anything off secondary market (ebay, etc) sales. Wouldn't it make more sense to sell you (or Toys R Us or whatever) as many as they could if you have the cash to buy them?

(I'm not saying you're wrong, just trying to figure it out.)

I wonder if people will start figuring out how to read the chips inside and "bootlegging" them.

Having a chip sitting in a USB or whatever is not going to fly in most cases. It will help unlock parts of the video game, but that is the end of it. Kids would not accept Kabbage Patched Kidz or Beenee Babeez, so neither would this work. The kid wants to play with and/or show off their collection.

As to $ to make by slowing production, this is established time and time again. First off: FREE MARKETING. The buzz created establishes this as a brand to people who aren't buying right now but may later. Also, as people pay 2nd market prices, they become more open to increased prices on the next wave of toys. Prestige is gained by the current owners, raising the overall cache of the brand. There are other long term reasons, but these are the big three I remember right now.

[BaronHelix]

Cawshis could probably chime in on this. He's got the mad market skillz, yo.

(All said, I look forward to seeing how toys will continue to expand in this way.)

[cawshis]

It is ludicrous to think that a big toy company wants to run out of product when there is still demand for it. The marketing "buzz" is rarely worth the hits to actual sales especially in an environment where every sale counts and parents are penny pinching. And kids are fickle beasts...how long will the buzz last if they can't get the set by 2013 Christmas. If I was a betting man (and I am), I would bet money that the executives in charge of the Skylanders launch are asked DAILY by the CEO where/when the product will be ready. Where are the toys? When will they arrive? Why did you not make more?

We could go into forecasting conservatively (how many times have toys like this been tried and fail?) and the miserable supply chains that have to feed a toy like this (jebus. plastic and microchips? ouch), but that's all boring operations stuff. They had a conservative forecast and didn't build a supply chain that could cover a major jump in demand...just in case this didn't take off, so they wouldn't have to eat the losses there...so everything they have now is what would have served a normal rollout while they try to build up the infrastructure to support the bigger business.

The fact that the brand is building "prestige" and cache is a nice side effect, but that does NOT generate profits...which is what a company wants in time for their quarterly reporting.

I can see why there is a conspiracy theory regarding it though. I mean parents have to work to buy the toys and then have to work to buy them? That's awful (and terrible business! You want parents to buy these toys EASILY!).

I read the article. This line cracked me up:

“Of course that’s all he wants for Valentine’s Day, Easter and everything. He asks all the time and we look constantly,” said Bertrand, adding that she’s on the Toys ‘R’ Us website three times a day checking to see if new stock of Skylanders has arrived.

To which my father would reply "How's it feel to want, kid? Get used to it." Yeesh.

[BaronHelix]

Thank you for joining the conversation. However, in the future, please remain silent when what you have to say make me look ignorant or mistaken.*




*With this condition, I expect you won't be able to say much.