The recession does not seem to be good for the educational gaming company LeapFrog, which announced rather depressing Q4 2008 results earlier this month. The company has been trying to do a turnaround and with its new product, Tag, the 2008 holiday season was extremely critical.
The $20 billion toy industry has faltered in recent years as children’s tastes and styles of play have changed. Toy spending has been widely seen as migrating to consumer electronics. Children are increasingly craving devices their parents want, many analysts say, like cellphones, digital cameras and portable digital music players, iPod being the best example of a beneficiary of this shift. Is there an opportunity for the tech sector innovators in this transition?