Feb. 15, 2012 at 3:23 PM ET
By msnbc.com news services
Facing tough competition from iPads, iPhones and iPods, toy makers are focusing on how technology can enhance their products.
The trend comes after toy companies saw sales fall 3 percent in the United States this holiday season, with many kids preferring to play games on their parents’ smartphones, or their own gaming consoles.
Now toy makers are looking beyond traditional toys to woo tech-savvy kids.
Carter Keithley, president of the Toy Industry Association, speaks to CNBC about how technology is enhancing the toy industry.
Reuters contributed to this report.