Mattel's Barbie Trouble

The toymaker's second-quarter earnings look good, but worldwide sales of its iconic doll fell 1% as little girls favor interactive toys over Barbie

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Anisha Katyayan likes her five Barbie dolls. Not a day goes by that she doesn't change her dolls' clothes. They go from crown-wearing princesses to brides to beach beauties. But 6-year-old Katyayan is slowly losing interest in Barbie as her attention is grabbed increasingly by computer games and other toys. One of her current favorites is a cash register, which lets her pretend to selling things at the grocery store. Six months ago, her Barbies were transformed several times a day, but now once a day seems to be enough. "I like playing on the computer more these days," says Katyayan, of Nesconset, N.Y.

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