Playing With the Big Boys : O.C. Toy Maker Seeks a Profitable Share of the ‘Space Jam’ Market

Marketing a successful board game that features “Space Jam” stars Michael Jordan and Bugs Bunny would seem to be child’s play.

Yet, even with an assist from Warner Bros.’ heavily promoted movie, the new board game from Playmates Toys Inc.--its first venture into the $374-million board game niche--is far from a slam-dunk.

The Costa Mesa-based company faces cutthroat competition at every turn from market giants like Parker Bros. and Milton Bradley. And the company will be hard-pressed to find space on store shelves in the midst of a toy store consolidation.

Despite the barriers, Playmates is optimistic that the board game will fly.

“Michael Jordan and Bugs Bunny are a combination that people would kill for,” Playmates Vice President Timothy J. Wills said. “Our strategy is to catch some of the heat from the movie to push up velocity on our sales.”

Licensing deals like the “Space Jam” collaboration with Warner Bros. are the meat and potatoes of Playmates’ business.

The subsidiary of Hong Kong-based Playmates Holdings Inc. stunned toy industry competitors during the early 1990s by selling 247 million Teenage Mutant Ninja Turtle action figures. It holds the license to the next generation of Star Trek action figures and recently bought the rights to produce play figures of the Looney Tunes cartoon characters.

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Like most toy companies, Playmates wants to expand its catalog to include other types of toys. And it’s betting that “Space Jam’s” merchandising juggernaut, which is spitting out everything from Michael Jordan cookie jars to “Space Jam” vitamins, will serve as its springboard into the board game niche.

But toy sales could fizzle if “Space Jam” sputters. And there’s always the risk that “Space Jam” merchandise will be blindsided if some other toy grabs kids’ attention.

Since board game sales are directly tied to the movie’s success, the company won’t have to wait long to learn the fate of its first board game.

The early returns are promising. “Space Jam” opened last Friday and managed to carve a place in box-office history over its premiere weekend. The film took in an estimated $29.25 million in receipts, making it the biggest non-summer opening ever for an animated film.

“We’ll know in the next couple of weeks what’s going to happen,” Wills said. “In the end, all you can do is cross your fingers. We’ve spent all of our money, the plans are in place and it’s up to Bugs Bunny and Michael Jordan.”

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Electronic and computer games grab most of the headlines, but board games aren’t ready to be buried alongside the Pet Rock. Board game sales rose to $374 million in 1995, up from $311 million a year earlier, according to the New York-based Toy Manufacturers Assn.

Board game sales typically rise during the holiday shopping season, fueled by adults who have fond memories of afternoons spent playing games like Monopoly or the Game of Life. They’re also less expensive than electronic games and make easy gifts for adults who don’t know what to get kids.

“You’re not spending $65 for a game and $200-plus for a video system,” said Carol Steinkrauss, spokeswoman for Beverly, Mass.-based Parker Bros., owner of Monopoly. “You can buy a good game for between $7.99 and $24.99.”

And even though board games are, at heart, fun, they win praise from parents who are trying to develop social graces--say, teaching a 10-year-old to win or lose gracefully--among their offspring.

“Parents won’t always articulate it, but they inherently realize that board games teach their children how to take turns, formulate strategy and all that good stuff,” said Mark Morris, public relations manager for Milton Bradley, the Pawtucket, R.I.-based board game manufacturer.

Manufacturers like board games because they generate a steady cash flow.

That’s why El Segundo-based Mattel recently paid $90 million to end a bidding war with Rhode Island-based Hasbro Inc. for an English company with the overseas rights to the Scrabble board game. And, in 1991, Hasbro added Parker Bros. to a board game empire that already included Milton Bradley.

During the upcoming holiday season, the two Hasbro subsidiaries will be marketing a combined total of 150 board games.

The onslaught of games, coupled with the scarcity of retail shelf space, makes it “tougher, much tougher” for newcomers like Playmates to succeed, said Neal Chukerman, whose Northbrook, Ill.-based company manufactures board games.

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While toy developers pump considerable time and expense into developing board games, the process is astoundingly simple. Chukerman, whose factory is manufacturing Space Jam, has boiled the process down to two steps: “It’s got to be fun and it’s got to be easy.”

That said, even the experts make mistakes.

Parker Bros. passed on Monopoly in the early 1930s, complaining that the game had as many as 50 “internal flaws” that made it unplayable. When it became obvious that the game was going to be a classic, the company quickly reversed field.

So far, the world’s most popular board game--which now features a CD-ROM version that clears the way for play on the Internet--has sold more than 160 million copies in 45 countries and 25 languages.

Popular games like Clue and Risk are now generational games that keep finding new audiences. But the shelf life of most other games ranges from a few months--like Space Jam--to about three years, so the toy industry has a voracious appetite for new titles,

The big toy companies turn over a third of their games each year, creating niches for companies like Playmates that hope to ride the coattails of a hit movie, book or video game. Space Jam’s competition during the holiday season includes board games based on Disney’s “101 Dalmatians” movie, the Goosebumps book series, last year’s “Toy Story” movie and the upcoming Batman film.

Playmates acknowledges that the Space Jam game is an “opportunistic bid” to establish itself with toy store buyers. And while it doesn’t harbor dreams of unseating Parker Bros. or Milton Bradley, Playmates views the board game category as potentially lucrative.

“When the giant toy companies are eating dinner, some crumbs are going to fall,” Wills said. “And for a small company like us, that crumb can be a big meal.”

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A Good Game

Milton Bradley Co.’s five-point test for a successful game:

* Is the game fun? Does the personal interaction among players bring pleasure, joy and happiness . . . more than just amusement and a way to pass the time?

* Is there a reward? Playing until the game beats you or until you fail is frustrating. Modern psychology tells us that much can be learned with rewards.

* Is the game challenging? Games reflect life, and achievement is an essential part of every day.

* Is the game frustrating? A game that seems unbeatable is just as bad as one that is too easy.

* Does the game have “repeat-play” value? Each round should be fresh and interesting, and continue to challenge and entertain every time it is played.

Source: Milton Bradley Co.

Play Money

In last year’s estimated $16.2-billion toy market, sales of games and puzzles increased more than 7% while video game sales fell nearly 20%. Estimated U.S. toy sales in 1994 and 1995, in millions:

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Sales 1994 1995 % change Video games $3,148 $2,533 -19.5% Dolls & accessories $1,691 $1,896 12.1% Activity toys* $1,821 $1,827 0.3% Infant/preschool $1,345 $1,391 3.4% Games/puzzles $1,220 $1,312 7.5% Vehicles $1,198 $1,213 1.3% Male action figures/accessories $926 $795 -14.1% Plush toys $921 $914 -0.8% Ride-ons $722 $797 10.4% All other toys $3,199 $3,289 2.8% Total: $16,191 $15,967 -1.4%

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* Building sets, model kits, art supplies, play kitchens, etc.

Source: Toy Manufacturers of America