More on the evolving intangible economy.
Children are switching from tangible toys to intangible toys, and at an earlier age, according to a recent New York Times story, "More Gloom on the Island of Lost Toy Makers," by Constance L. Hays (Feb. 23, 2005).
Adding to the industry's problems, children are losing interest in toys earlier, their attention seized by video games, cable TV and the Internet, in a phenomenon known to the trade as "kagoy," which stands for "kids are getting older, younger." What only a few years ago nicely held an 8-year-old's attention - action figures, for example - now is considered marketable only to 3-, 4- and 5-year-olds, said Neil Friedman, the president of Fisher-Price Brands, a division of Mattel. "You're not going to change it," he added.
All this is part of the evolving transition in post-industrial countries to an intangible economy (See our post, "Intangibles Key to Our Economic Future," Feb. 10, 2005). The transition is being led, as usual, by kids. What an amazing wondrous occurrence, that young children would somehow 'know' to switch from a tangible toy truck to an intangible toy truck. My only question, "How do 5 year-olds know this?"