Japanese toymakers not looking forward to Christmas

November 8, 2008 by J!-ENT

Mainichi Daily News reported:

This year’s winter sales war is likely to be tough for toy manufacturers, with industry leaders Namco Bandai Holdings Inc. and Tomy Co. Ltd. already revising sales estimates downwards for this fiscal year. And with the deteriorating economic situation eating into year-end bonuses and consumers less likely to splurge over the Christmas and New Year period, toy companies are resigning themselves to a tougher festive season than usual.

Industry number one Namco Bandai announced on Wednesday that projected sales figures for the 2008 fiscal year were being revised downwards by 6.4 percent to 440 billion yen, with operating profit taking an even greater 36.8 percent dive to 24 billion yen.

With year-end sales — which make up 40 percent of yearly domestic sales — taking a pounding, the company has also had to scale back marketing campaigns for games and other products.