New Barbie Girls Sashay into View with MP-3

Mattel is using technology to come up with a new twist on a toy
launched in 1959 to appeal to the Web-savvy, multimedia girl shoppers. Mattel
recently unveiled Barbie Girls, a doll-shaped MP3 player that turns into a live
character at BarbieGirls.com, a website where girls can interact with each other
in a manner reminiscent of Second Life, the virtual world for adults.

The company hopes the new toy, which brings together Web
surfing, shopping and music downloads, will cool demand for rival MGA
Entertainment's sassy Bratz dolls-a line of big-headed, skinny dolls with
scant and trendy clothing.

The world's largest toy maker is also aiming at Apple's iPod
music players and Ganz's Webkinz, furry animal toys that come alive online.

The official launch of BarbieGirls.com came a week after the
company gave it a public test run. Toy analysts say this latest addition to the
48-year-old Barbie line should be a hot seller, helping the brand reverse nearly
five years of declining sales.

Meanwhile the Barbie Girls music players, which can hold up to
120 MP3 or 240 WMA-file songs, will be available in the market in July and will
cost $59.99.

"I think we've got a hit on our hands," says Reyne
Rice, a New York-based toy trends expert at the Toy Industry Association.

At BarbieGirls.com, users can customize their characters'
looks and styles. They can also go to the online mall and shop for clothes,
accessories and furniture for their online room. Users can even adopt a pet. But
more importantly, Rice adds, "I think parents are going to like the safe
online portal."

To ensure girls' safety in public chats, Mattel devised a
limited vocabulary of 2,000 words that girls can use on the website, designed to
prevent use of sexual language, profanity or hurtful words such as
"stupid" or "hate".

Mattel ensures 'users are best friends' by requiring one of
them to physically connect their Barbie Girls MP3 player to a friend's
computer.

"Each element of Barbie Girls-from safety to music-is
designed to help Barbie win back market share from the brash Bratz line,"
says Christopher Byrne, independent toy industry consultant.

"After the implosion of Lindsay Lohan and Britney Spears,
Barbie seems like the wholesome, wonderful thing now. Bratz really got a lot of
momentum from tying into those people," says Byrne.