NEW YORK, NY February 16, 2009 —The American International Toy Fair is underway in New York.

Mattel president Neil Friedman says the company understands money is tight.

FRIEDMAN: I think we have everything from price points to brands that consumers love. So we feel in a pretty good place, even though we are very cognizant that the discretionary spending is going to be less than it was in the past.

REPORTER: Friedman says 85 percent of his company's toys are under $30.