I remember a kid at the school brought in a Transformers pack-in flyer with some of the currently available figs. The other kids surrounded him like it was the first time they'd seen toys. I really think toys are just out of favour these days with kids.
Between video games and trading card games, kids have other things keeping their attention. But the kids certainly were interested in the Transformers, so maybe when the TCG market bottoms out -which it looks like it's bound to this year if things don't change- toys will get a resurgence.
Star Wars is about the biggest hope toys have right now. The kids didn't register Phantom Menace of Attack of the Clones, but boy did Revenge of the Sith hit the school in a big way. I had kids playing Jedi vs Sith games all over the yard, they were talking trivia. One kid was lying on his stomach with an arm and both legs folded to ,look like they'd been sliced off. But even then, I don't think these kids were rushing to Toys R Us.
I think the lower birth rate has a lot to do with it. When I was young, at least, I could play Joes or super heroes or whatever with my brothers, or with any number of kids on the street. Now, kids will only have one or two friends nearby. And it's easier to play a video game or card game with one kid than a big game of toys.
