Consumer Confidential: Mattel up, confidence down, virtual crimes
Here’s your tired-of-being-blond Tuesday roundup of consumer news from around the Web:
-- There will always be Barbie. Strong holiday demand for everyone’s favorite doll helped push Mattel’s fourth-quarter profit up a better-than-expected 14%. But the company reported that its U.S. sales dipped and weakness continued at its Fisher-Price unit. The holiday quarter is crucial for toy makers, who can make up to half of their annual sales during the period. Mattel, which is the No. 1 U.S. toy maker, says its net income rose to $370.6 million for the period ended Dec. 31. That’s up from $325.2 million a year ago. A 2% drop in U.S. sales was offset by stronger results overseas, where revenue rose 5%. (Associated Press)
-- If only Barbie could work her magic on the rest of the economy. A private research group says that consumer confidence retreated in January after two straight months of big gains. The Conference Board says its Consumer Confidence Index now stands at 61.1, down from a revised 64.8 in December. Economists had expected a reading of 68. The index had surged from 40.9 in October to 64.8 in December. The Conference Board says that even though consumers were more upbeat about jobs, they were less optimistic about income prospects. Rising gas prices have also taken a toll on sentiment. (Associated Press)
-- Be careful: Virtual crimes can have real-world consequences. The Dutch Supreme Court has upheld the theft conviction of a youth who stole another boy’s possessions in the popular online fantasy game RuneScape. Judges ordered the offender to perform 144 hours of community service. Only a handful of such cases have been heard in the world, and they have reached varying conclusions about the legal status of “virtual goods” and whether stealing them is real-world theft. The Netherlands’ highest court said an online amulet and mask had an intrinsic value to the 13-year-old gamer because of “the time and energy he invested” in winning them while playing the game. Therefore, stealing them virtually affected the real world. (Associated Press)
