My take on the whole M-Go technology connectivity initiative is this: I think the actual, number one, honest to goodness single issue from which all other problems stem from is the fact that the company has established unrealistic and uncompetitive margin requirements for its products. Margins requirements go up, price points stay the same, so of course quality suffers, which in turn makes the product feel cheaper and thus overpriced and so consumers turn to the competition. Sales fall, we lose market share, and in turn margin requirements go up in a desperate attempt to improve the bottom line. A vicious downward spiral.
The idea is that, if we just put some compelling tech into the toys, we wouldn't be competing with other toy companies becuase our products would be more advanced. People would be buying into a ecosystem or an experience, yadda yadda yadda. We could charge more, and people would gladly pay, our margins would be fat and so would our POS, we could finally breakout of the cycle. They see tech as the answer.
Its a risky bet, and the stakes are super high at the moment. So far consumers haven't shown much appetite for really expensive tech toys, but maybe that's because we've yet to crack that nut with a truly compelling must have feature yet. I wonder if it even exists, or if it will become this company's white whale.