Mobile Toys: Business and Revenue Models

Your 3 year old is not listening to you. Technology might be your answer. Wabi Inc. is creating a new generation of mobile toys called Wabi Buddy. Buddy is not just another teddy bear. It is a teddy bear equipped with the latest wireless technology that will help remote grandparents, parents talk to the child through the toy.

To leave a message on Wabi Buddy, you have to dial a designated number, type in a special code for the specific bear, record a message, and type the time the message should be played. Children know that a message is waiting when they hear the bear giggling. To hear the message, they push the bear's belly button. The cost: a 10c per minute calling fee on top of the bear's $49.00 cost.

Wabi, vtech, LeapFrog Enterprises, and others are aiming at the emerging generation of electronic learning toys/aids equipped with mobile and voice technology capabilities. The goal is to create new experiences that integrate education and play. Manufacturers hope that this new generation of toys will increase the market size by 10% going forward.

Emergency Concierge Services for Kids
Mobile Family Services is attempting to combine wireless applications with unique services to help families stay connected, especially with the youngest members, with a device called Leonie.  The Leonie is a mobile phone device that is implanted into a toy such as a teddy bear. By pressing a single button, children can be connected to a special operator. The operator will know immediately who is calling. The service would be simple and designed to deal with day-to-day occurrences, such as children missing a bus or forgetting something at home, as well as more threatening situations. The device, with its GPS antenna, will allow an operator to track the position of a child.

The device can be placed in a number of different objects. It was important to put the device in items with which children would feel comfortable and with which they could develop a relationship.

Leonie is targeted at families with children less than 11 years of age. The service is currently being test marketed in Europe and is expected to be tested in the U.S. in the next year. The U.S. is expected to account for about 45 percent of the future market for the device, Germany is expected to account for 10 percent, and the rest will be spread across other markets. [Source: Financial Times, March 12, 2001]

The mobile toys business/revenue model and pricing strategies research is currently underway. If you have any suggestions on companies we should look at please send us an e-mail.