Barbie: Where the Girls Aren't

Mattel's first-quarter results today make at least one thing clear: If you want to compete for the toy market for 6- to 13-year-old girls, you had better have an impressive website.

The toymaker said sales of the Barbie brand, which has struggled in recent years, slid 12 percent in the United States in the quarter.

One reason cited for the weakness is competition from Hannah Montana dolls and toys, a franchise-cum-cult Disney has built around 15-year-old Miley Cyrus.

If only it were really other dolls edging Barbie out of her prime spot in the American childhood. But the real reason behind her slow demise is that at 49, Barbie is becoming obsolete.

Children want Web-based toys, and they want them at younger and younger ages.

Mattel has tried, with mild success, to develop an internet presence for Barbie--she has her own virtual world. Last summer Mattel started selling Barbie Girls, a handheld MP3 player that can be accessorized like a doll, make friends, and shop in a virtual world at Barbiegirls.com.

But the franchise still hasn't managed to defend against an onslaught of toys with their own web-based components.

MGA Entertainment's Bratz dolls--a tarted-up version of Mattel's classic toy--have provided stiff competition by launching their own online world last summer. Like Barbie's world, the site is an online community where you can create a character, shop for virtual clothing, play games, and make friends.

The success of Bratz and Barbie online are nothing compared with Ganz's Webkinz--plush toys that you register online to access a Web play area and virtual world that appeal to children of both genders. It's sort of like Second Life and Facebook combined. Except for stuffed animals.

Since the advent of Webkinz, MGA Entertainment has brought "Rescue Pets" to market, another type of plush toy that comes with access to an online world.

Hasbro launched its own riff on the concept, called "Littlest Pet Shop VIPs," in October.

Liz Gunnison