Kids still love Elmo, and the only ones not buying Elmo toys are the parents that actually bothered to get offended by the story.Very sad to hear about the cuts at Sesame, but honestly it doesn't surprise me. Public television's funding has been drastically cut in recent years, Sesame itself films less episodes a season, and I wonder if the whole Kevin Clash debacle has made their funding drop as far as maybe parents not wanting to buy Elmo toys and products which as everyone knows who buys Sesame merch that the monies from the purchase go back into the funding of the show.
The real problem is, kids just aren't buying toys anymore period. I did see the new TMNT line disappear from store shelves, though. But other than that, toys are getting very expensive for multiple reasons (a good portion probably because no one's buying them and they have to make that up, causing less people to buy them). The most damaging thing to toy lines now? Apps. Cheap, crappy little games that shut kids up better than a 15 dollar Transformer that they'd get bored of. While I do like Hasbro's handling of the Sesame Street license so far, they really haven't shown much initiative to expand the line by much lately. We need something like a under 30 dollar Tickle Me Elmo type thing that gets the 3 and 4 year old crowd excited to buy a Sesame Street toy again.