‘Virtual Pet’ Toy May Not Collar U.S. Market

Jesse Cooper was expecting to see hordes of shoppers jostling one another Friday morning to get first crack at the American version of the “virtual pets” that have been wildly popular in Japan.

But no one was in sight when he arrived more than an hour before the Van Nuys Toys R Us opened. When the doors finally opened about 20 people were waiting calmly in line.

“This is a nice surprise,” said Cooper, 40. The Reseda resident ended up purchasing nine of the American Giga Pets, which made their West Coast debut Friday, and two Japanese Tamagotchis. The electronic interactive “pets” eat, sleep, poop, play and grow on the screen of a small plastic device attached to a key chain.

In Japan, where the original games hit the market in November, the toys created lines and intense coverage by the media--all reminders of the Power Rangers, Tickle Me Elmo and Cabbage Patch frenzies in the United States.

But toy industry observers say it’s unclear whether the “pets” made by Illinois-based Tiger Electronics and Japanese manufacturer Bandai America Inc. will be as popular.

“The tremendous success [of virtual pets] in Japan cannot be translated automatically in the United States,” said David Leibowitz, a managing director at Burnham Securities in New York City. “The next four to six weeks will tell.”

“If Beanie Babies were not as popular, it would be easier,” added Leibowitz, who follows the toy industry. He said the Beanies and virtual pets are competing for the same market--both types of toys are small, inexpensive and collectible.

Despite their popularity in Japan, Bandai’s Tamagotchis face several disadvantages in the U.S. market. At $14.99 each, they are more expensive than the $9.99 Gigas.

And the Gigas are likely to get an edge from their licensing deals with two movies: They will soon feature a puppy from Disney’s “101 Dalmatians” and a baby Tyrannosaurus Rex tied to “Lost World,” the sequel to “Jurassic Park.”

The commercial success of toys is now “driven by entertainment. That’s where the real excitement is,” said Hank Wilson, an analyst with Hambrecht & Quist in San Francisco.

Carol Fuller, corporate spokeswoman for Toys R Us, one of the retailers carrying both products, said so far sales of both brands are running neck and neck.

At the Van Nuys store, the lower price of the Giga was attracting customers, but some were going directly for the Tamagotchi.

“I’m buying it for my girlfriend. I don’t know the difference, but that’s the brand she says she wants,” said David Lovering, a 35-year-old musician from North Hollywood.

Gene Morra, vice president of marketing and sales at Cerritos-based Bandai, is convinced the Tamagotchi will sweep Americans off their feet. He said it took only a few hours to sell out the first shipments made to stores in New York City and Los Angeles last week.

Bandai, whose last big U.S. success was the Power Ranger toy line, plans to put 20 million pets on the world market in the next 10 months, said Keiko Okumura, a Bandai spokeswoman in Tokyo.

On the other hand, Tiger Electronics, the biggest American player in hand-held electronic games, is getting ready to launch its pets throughout North America and in Europe before the end of the month, spokeswoman Lana Simon said. They are leaving the Asian market to Bandai for now.

By 6 p.m. Friday at the Van Nuys Toys R Us, about a third of the pets had been sold.

“We will have them through the weekend,” store manager Denise Cooley said. The store had a supply of 2,300 Giga pets, but Cooley declined to divulge the number of Tamagotchis.

The toys are unlikely to revolutionize the toy industry, said Wilson of Hambrecht & Quist. Barbie will surely remain the biggest seller, he said, “and the momentum of 1997 will be the male action toy, with boosts from ‘Star Wars,’ ‘Jurassic Park,’ ‘Batman.’ ”

“The virtual pet will not be the top selling toy in terms of sales,” he said. “I can guarantee that.”