Cliff Annicelli over on the Playthings blog seems to be pretty optimistic that the toy sector will survive and perhaps even thrive as the rest of the economic drops.
"... Toys may not have been part of the overall economy's retail sales free fall. In addition to the October “Advance Monthly Retail Sales” figures cited above, the Census Bureau today also released finalized monthly sales figures for September. They showed that September 2008 retail sales at “hobby, toy and games stores” were up 5.2 percent, to $1.23 billion, compared to September 2007."
"The September data also showed that year-to-date retail sales at hobby, toy and game stores were up 9.6 percent to $11.1 billion through September 2008 compared to the same point in 2007. In fact, according to the Census Bureau, sales at hobby, toy and game stores in 2008 have been up every month this year compared to 2007."