Mattel Gives Max Steel Action Figure New Lease on Life

Not many toys get a second shot at success. Once interest wanes, toy makers often are quick to move to the next franchise.

So when Mattel decided to revive its dormant Max Steel line of action figures in the United States, it had a rare opportunity to re-examine the old marketing strategy for the brand. In doing so, it decided this time to shift its focus to multimedia, and let the toys follow.

“We have put focus and discipline around franchise development and content development,” said Tim Kilpin, the executive vice president for global brands at Mattel, the world’s largest toy company based on revenue. Plans for the Max Steel brand include an animated television series, a live-action short movie, an online hub, mobile games, graphic novels and, eventually, toys and other products.

“If there is a new normal, it’s that there is not just one way to reach an audience,” Mr. Kilpin said. “You’ve got to reach them and engage them through all that’s available.”

When Max Steel was introduced in 1999 as a line of boys’ action toys, it found modest success in the United States. But after the terrorist attacks of 2001, it drew scrutiny from its parent.

“There were some themes that we were very concerned about,” Mr. Kilpin said, “so we did not pursue the range of opportunities in the United States.”

Max Steel faded away in this country, but it continued to sell in South America, where it eventually became a blockbuster hit, outselling Mattel’s top lines, Hot Wheels and Barbie. More than a decade later, when Mattel was looking for a new line to start in the United States, it found one in the back of its own closet.

“We stepped back and looked at why it was so successful in Latin America,” Mr. Kilpin said. Mattel found that boys loved the idea of someone who could unlock his potential and become a hero. Mattel tweaked the original concept, making the character Max younger and easier for boys to relate to, and it began to plot a campaign to bring the brand back to the United States.

But times have changed, and children are much more media-wise than they were in the late ’90s. To market the revived brand, Mattel took a page from its Monster High franchise, which was introduced in 2010 as a line of fashion dolls, with an emphasis on multimedia, including young adult novels and a Web site that used videos and games.

Mattel’s focus on multimedia is no surprise, said Sean McGowan, an analyst at Needham & Company. “Mattel is a pioneer for creating toys with media property,” he said, citing He-Man and the Masters of the Universe, a boys’ action franchise Mattel started in the 1980s.

Other toy companies have established similar strategies. Hasbro, the No. 2 toy maker, created a production studio in 2009 and worked with Discovery Communications in 2010 to start a cable television channel called the Hub. Last year, the toy maker Jakks Pacific worked with a subsidiary of Dentsu, the Japanese advertising giant, to produce its first animated television series, “Monsuno,” which was supported by a line of toys and other products.

Toy makers are looking for ways to shore up their revenue. Retail toy sales in the United States declined slightly last year, to $16.5 billion from $16.6 billion the year before, according to the NPD Group, a market research company. Mattel is scheduled to report its fourth-quarter earnings on Friday.

Mattel would not reveal the marketing budget for the reintroduction of Max Steel, but Mr. Kilpin said it was “significant.”

“The best way to put perspective around the scale of it is to say it is a major new franchise launch for the company, much like Monster High was,” he said.

Like Monster High, Max Steel will start with a Web site, maxsteel.com, which will begin at the end of February and include games, character biographies and other features. The campaign will include an animated TV series, Mr. Kilpin said, because Max Steel is better suited to episodic television than was Monster High.

In FremantleMedia Enterprises, Mattel found an experienced producer of children’s television entertainment that it said could generate excitement for Max Steel around the globe. The show will have its premiere on March 25 in the United States on the Disney XD channel. Then it will be introduced in more than 100 markets.

The intent of the wide distribution is to create viral marketing on social networks, said Bob Higgins, the executive vice president for children’s and family programming at Fremantle. “Around the world, kids will start hearing about this,” he said. “Kids want to do what their friends do. If they are watching Max Steel, they want to be a part of that party.”

The marketing campaign will also include graphic novels, which help immerse boys deeper into the storytelling, said Elizabeth Kawasaki, senior editorial director at the animé publisher Viz Media.

“There has been always traditional publishing with media tie-in stuff,” she said, but children’s properties once consisted primarily of early reader books and sticker books. “The market has really changed now.”

Other consumer products will follow, including toys that will appear in stores in August. By then, Mattel said it hopes the brand will be embedded in the hearts and minds of boys.

“The first way that they are going to experience the brand is through those storytelling mechanisms,” Mr. Kilpin said. “Marketing ground zero for this franchise will be maxsteel.com.”

“We believe we are experts in play, not just in making toys,” he said. “That’s what our job is today.”

This article has been revised to reflect the following correction:

Correction: January 28, 2013

An earlier version of this article misidentified Tim Kilpin, an executive at Mattel. He is the executive vice president overseeing the company’s global brands team, not a senior vice president.

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Djokovic Wears Down Murray for his 3rd Straight Australian Open

Aaron Favila/Associated Press

Serbia's Novak Djokovic celebrates his win over Britain's Andy Murray on Sunday.

But then Murray, who beat Djokovic at the U.S. Open Final, is hardly alone. Nobody has beaten Djokovic at Melbourne Park since 2010 when he lost in five sets in the quarterfinals to Jo-Wilfried Tsonga.

Since then Djokovic has reeled off three straight titles on the true-bouncing blue court, generating squeak after squeak with his quick-moving feet and innumerable breaches in his opponents’ morale with his ability to contort and extend his body in pursuit of others’ best efforts.

"What a joy. It’s an incredible feeling to win this trophy again," Djokovic said, according to Reuters. "This is definitely my favorite grand slam. I love this tournament. I love this court.

"I have to congratulate Andy and thank him,” he said. "We have played so many great matches in the last two years. Bad luck for tonight but I wish you best of luck for the season."

Murray, his boyhood friend and one-time doubles partner, knows Djokovic’s strengths as well as anyone. He shares many of them but on this clear night in Melbourne, after more than holding his own in the early phases of the match, he gradually faded — suffering from blisters on his feet and also from his opponent’s strengths — as Djokovic put the finishing touches on his 6-7 (2-7), 7-6 (7-3), 6-3, 6-2 victory.

Djokovic is now the first man in the 45-year Open era to win three consecutive titles at the Australian Open. Only two other men won have won three or more Australian Championships in a row: Jack Crawford from 1931 to 1933 and Roy Emerson from 1963 to 1967.

But neither of those men nor perhaps any other man has covered the corners quite like the elastic-limbed Djokovic.

“His record here is obviously incredible,” Murray said. “So well done again.”

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'Argo' wins Producers Guild Awards

LOS ANGELES (AP) — "Argo" continues to shake up the Oscar race by taking the top honor at the Producers Guild Awards on Saturday.

Ben Affleck, coming off winning Golden Globe Awards for best motion picture drama and director for the real-life drama, received the award handed out at the Beverly Hilton Hotel.

"I'd be remiss if I didn't mention that I'm still working as an actor," he said in his acceptance speech.

Affleck also stars in "Argo" as the CIA operative who orchestrated a daring rescue of six American embassy employees during the 1979 Iranian hostage crisis. George Clooney and Grant Heslov share the producer award with Affleck as "Argo" beat out the Civil War saga "Lincoln," which has a leading 12 Academy Awards nominations.

Other nominees in the PGA movie category were "Les Miserables," ''Zero Dark Thirty," ''Beasts of the Southern Wild," ''Django Unchained," ''Life of Pi," ''Moonrise Kingdom," ''Silver Linings Playbook," and Skyfall."

Along with honors from other Hollywood professional groups such as actors, directors and writers guilds, the producer prizes have become part of the preseason sorting out contenders for Academy Awards.

The big winner often goes on to claim the best-picture honor at the Oscars on Feb. 24.

Disney's "Wreck-It Ralph" won the guild's animation category, beating "Brave," ''Frankenweenie," ''ParaNorman" and "Rise of the Guardians."

"Searching for Sugar Man" took the documentary prize, beating "A People Uncounted," ''The Gatekeepers," ''The Island President," and "The Other Dream Team."

Showtime's "Homeland" won the producer's award for television drama series, which beat out "Breaking Bad," ''Downton Abbey," ''Game of Thrones," and "Mad Men."

The ABC sitcom "Modern Family" took the prize for best comedy series for the third straight year, beating "30 Rock," ''The Big Bang Theory," ''Curb Your Enthusiasm," and "Louie."

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Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

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J. Richard Hackman, an Expert in Team Dynamics, Dies at 72

J. Richard Hackman, a Harvard psychology professor whose fieldwork sometimes took him to the cockpit of an airliner to observe the crew in a nearly five-decade quest to determine the dynamics of teamwork and effective leadership, died on Jan. 8 in Boston. He was 72.

The cause was lung cancer, his wife, Judith Dozier Hackman, said.

Dr. Hackman, the author or co-author of 10 books on group dynamics, was the Edgar Pierce professor of social and organizational psychology at Harvard.

In one of his best-known books, “Leading Teams: Setting the Stage for Great Performances” (2002), he replaced the popular image of the powerful “I can do it all” team leader with that of someone who, as he wrote, had the subtle skills “to get a team established on a good trajectory, and then to make small adjustments along the way to help members succeed.”

The conditions for a successful team effort — among them “a compelling direction, an enabling team structure, a supportive organizational context and expert team coaching” — “are easy to remember,” Dr. Hackman wrote.

“The challenge,” he continued, “comes in developing an understanding of those conditions that is deep and nuanced enough to be useful in guiding action, and in devising strategies for creating them even in demanding or team-unfriendly organizational circumstances.”

Besides tracking the interplay of pilots, co-pilots and navigators aboard civilian and military planes, Dr. Hackman observed corporate boards, sports teams, orchestra players, telephone-line repair crews, hospital workers and restaurant kitchen staff members.

And in recent years, for his 2011 book, “Collaborative Intelligence,” he was allowed to observe interactions within the American intelligence, defense, law-enforcement and crisis-management communities.

“Although my main aspiration has been to provide guidance that will be useful to team leaders and members,” he wrote, “there are no ‘one-minute’ prescriptions here — creating, leading and serving on teams is not that simple.”

Anita Woolley, a professor of organizational behavior and theory at the Tepper School of Business at Carnegie Mellon University in Pittsburgh, said, “The key thing about Dr. Hackman’s work is that it stands in contrast to some of the more popular models of leadership that focused very much on style or how leaders behave, versus what they do.”

Rather than viewing pay as a prime motivator for good performance, she continued, “he focused on features of people’s jobs that made them more intrinsically satisfied: the freedom to determine how they conduct their work, having a variety of tasks, having knowledge of the ultimate outcomes of their work, knowing how their work affects or is received by other people.”

He also liked to overturn some of the received wisdom about teamwork. In a 2011 article for The Harvard Business Review, Dr. Hackman listed “Six Common Misperceptions About Teamwork.” Among them was this:

“Misperception No. 2: It’s good to mix it up. New members bring energy and fresh ideas to a team. Without them, members risk becoming complacent, inattentive to changes in the environment, and too forgiving of fellow members’ misbehavior.

“Actually: The longer members stay together as an intact group, the better they do. As unreasonable as this may seem, the research evidence is unambiguous. Whether it is a basketball team or a string quartet, teams that stay together longer play together better.”

John Richard Hackman was born in Joliet, Ill., on June 14, 1940, the only child of J. Edward and Helen Hackman. His father was an oil pipeline engineer, his mother a schoolteacher.

Dr. Hackman received a bachelor’s degree in mathematics from MacMurray College in Jacksonville, Ill., in 1962, and a doctorate in psychology from the University of Illinois in 1966. He soon joined the psychology and administrative sciences department faculties at Yale, where he taught until 1986, when he moved to the psychology and business departments at Harvard.

Besides his wife, who is an associate dean at Yale, he is survived by two daughters, Julia Beth Proffitt and Laura Dianne Codeanne, and four grandchildren.

After Dr. Hackman died, The Harvard Crimson wrote that for years he had “devoted countless hours to improving one team in particular — the Harvard women’s basketball squad, for which he volunteered as an honorary coach.”

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Azarenka Defeats Li in Australia to Keep Women’s Title

Dennis Sabangan/European Pressphoto Agency

MELBOURNE, Australia — In a momentum-swinging final interrupted by fireworks and, yes, more medical timeouts, Victoria Azarenka defended her Australian Open singles title by rallying to defeat Li Na 4-6, 6-4, 6-3.

The victory, which allowed Azarenka to retain the No. 1 ranking ahead of Serena Williams, was a tribute to Azarenka’s powers of resilience and concentration.

Far from her relentless best, she managed to overcome a crowd that audibly favored Li and an emotional week in which she was widely criticized for taking a medical timeout at a critical phase of her semifinal match over Sloane Stephens of the United States.

When Li missed her final shot, Azarenka dropped her racket, eyes wide, and then went to the net to shake hands with her Chinese opponent. She was soon on her chair sobbing into a towel. She then rose and went to the opposite side of the court to reach up and shake hands with members of her team, including her coach Sam Sumyk and her friend, the musician Redfoo.

“Enjoy this one, you are a champion,” Sumyk said.

The victory was the latest major coup on a hard court for Azarenka, the globe-trotting 23-year-old from Belarus. Her power baseline game is a fine fit for the true-bouncing hardcourt game.

The match, often better drama than tennis, included 16 service breaks, and both players finished with significantly more unforced errors than winners. But on an unsteady night, Azarenka was the steadier force, making 18 winners and 28 unforced errors while Li had 36 winners and 57 unforced errors.

The match changed tone and rhythm for good with Azarenka leading 3-1 and Li serving in the second set. After a swing volley from Azarenka, Li tried to shift direction quickly. But her left ankle gave way and she went down, her racket clattering on the court as she winced and rolled onto her back.

When she rose, she hesitated to put weight on her left foot and limped to her chair for treatment where her ankle was wrapped during a three-minute medical timeout.

Li returned and won five straight points to hold serve and go up 0-40 with Azarenka serving. But, in what proved to be the critical game, Azarenka was able to recover and win five straight points and to take a 4-2 lead. She later closed out the set.

Then in the third set, with Li up 2-1, play was interrupted for about 10 minutes for a nearby fireworks display. On the first point after play resumed, Li’s left ankle buckled again as she ran to her left. She fell onto her back and her head slammed against the hard court surface.

Initially dazed, she lay on the baseline where she was attended by tournament medical personnel; she eventually returned to her chair under her own power where they continued to examine her for injuries.  In total another seven minutes passed before play resumed. Azarenka reeled off the next three games to re-take command of the match, this time for good.

The victory, which required two hours and 40 minutes, allowed Azarenka to join an elite club. She is now the fifth active women’s player with more than one Grand Slam singles title. The others: Serena Williams with 15, Venus Williams with 7, Maria Sharapova with 4 and Svetlana Kuznetsova with 2.

Serena Williams had come into the tournament as the prohibitive favorite but was stunned in the quarterfinals after experiencing back problems and eventually losing to the 19-year-old Stephens.

 Azarenka had scares of her own, dropping a set to Jamie Hampton in the third round and then losing her composure in the final stages of her match against Stephens. Treated on a changeover after complaining of breathing problems with Stephens about to serve to stay in the match at 4-5 in the second set, Azarenka eventually left the court for medical care.

The total break lasted nearly 10 minutes, and Stephens’s coach David Nainkin later suggested that Azarenka had “bent” the rules to shift the momentum of the match.

Other analysts and coaches were also skeptical,  but Azarenka, while acknowledging the coincidental timing of the injury timeout, insisted that she was suffering from a legitimate injury: a rib problem that required treatment.

In the wake of the debate, the crowd in Rod Laver Arena for the final greeted Li with considerably more warmth than Azarenka on this cool evening. Azarenka’s now-traditional garb for walking on court — head covered by sweatshirt hood — seemed appropriate given the cool temperature.

The crowd support became more evident as the match progressed, but Azarenka, one of the game’s most intense competitors, managed to recover from the loss of the first set and keep her eye on the prize despite three extended breaks in play: two when Li required medical timeouts of her own and one for the customary Australia Day fireworks display.

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Notre Dame’s Te’o says had no part in forming hoax

Jan 24 (Reuters) – Notre Dame football player Manti Te‘o said he was the victim of an elaborate online hoax and denied in an interview broadcast on Thursday having had any part in the construction of the dramatic story of his dying girlfriend.

“No, I did not,” Te’o said in the interview with Katie Couric broadcast on the daytime talk show “Katie.” “I think what people don’t realize is that the same day that everybody else found out about this situation, I found out.”

The reported deaths of Te’o's grandmother and purported girlfriend, both on Sept. 12, and his response to the tragedies, were often repeated stories during Notre Dame‘s bid for a national championship last season. His grandmother did die that day.

Te’o, who was a finalist for college football’s highest individual honor for helping drive Notre Dame to an undefeated regular season, admitted he maintained the public deception after he learned the truth that she had never existed, but he did not do so for personal gain.

Couric asked Te’o to respond to several theories people have raised since the hoax was revealed, including that he might be gay and created the relationship to hide his sexual orientation.

“No, far from it,” Te’o said when asked by Couric if he were gay. “Far from that.”

Te’o sat with his hands often clasped and responded in a soft tone to Couric‘s questions, telling her he did not know if the Lennay Kekua story had supported his Heisman trophy candidacy.

It was his first on-camera interview since sports blog Deadspin.com broke the story on Jan. 16 that Kekua did not exist. Couric also interviewed his parents, Brian and Ottilia Te‘o, who defended their son.

Notre Dame, one of the most powerful institutions in U.S. collegiate athletics, held a news conference within hours of the Deadspin.com story to say that Te’o had been duped.

Te’o had told sports network ESPN in an off-camera interview on Friday that an acquaintance, Ronaiah Tuiasosopo, had told him he was behind the hoax.

CONFESSED HOAX

Te’o said in the interview with Couric that Tuiasosopo, who he had spoken to twice before and had believed was Kekua‘s cousin, confessed the hoax to him on Jan. 16.

Te’o said he received a telephone call from the person claiming to be Kekua on Dec. 6 – two days before the Heisman presentation – and he wasn’t really certain she never existed until Tuiasosopo‘s confession to him.

“My whole reality was she was dead, and now all of the sudden she’s alive. At that time I didn’t know that it was just somebody’s prank.”

He went along with the Kekua story the day of the Heisman presentation, though he knew at a minimum that she was alive, and did not tell his parents until Christmas, he said.

“Part of me was saying that if you say she is alive what would everybody think? What are you going to tell everybody who follows you, who you inspire? What are you going to say? At that time, on Dec. 8, two days after I just found out she was alive, as a 21-year-old, I wasn’t ready for that.”

Te’o said he “wasn’t forthcoming” about the extent of his relationship with Kekua, that they had never met in person, but reporters did not ask him directly if they had met in person.

He said he was most sorry for having told his father he had seen Kekua in person when he was in Hawaii, a story that his father repeated to media when asked.

When asked why he wouldn’t simply want a girlfriend he could spend time with on campus, Te’o said he was drawn to Kekua because her background appeared similar to his own.

“What I went through was real,” Te’o said. “The feelings, the pain, the sorrow, that was all real. That is something I can’t fake.”

Te’o said he did not know how the hoax would affect his position in the National Football League draft.

“As far as my draft status, I hope and pray that good happens obviously, but as long as my family is OK, I can live with whatever happens,” he said. (Reporting by David Bailey; Editing by Cynthia Johnston and Tim Dobbyn)

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Disney says JJ Abrams to direct next 'Star Wars'

LOS ANGELES (AP) — It's official. The force is with J.J. Abrams.

The Walt Disney Co. issued a statement Friday night confirming reports that had been circulating for two days that Abrams, Emmy-award-winning creator of TV's "Lost" and director of 2009's "Star Trek" movie, has been pegged to direct the seventh installment of the "Star Wars" franchise.

"J.J. is the perfect director to helm this," said Kathleen Kennedy, the movie's producer and president of Lucasfilm, which was acquired by Disney last month for $4.06 billion.

"Beyond having such great instincts as a filmmaker, he has an intuitive understanding of this franchise. He understands the essence of the Star Wars experience," Kennedy said in the statement.

The movie will have a script from "Toy Story 3" writer Michael Arndt and a 2015 release.

Lawrence Kasdan, who wrote "The Empire Strikes Back" and "Return of the Jedi" in the original trilogy, will work as a consultant on the new project.

Abrams has already headed the reboot of another storied space franchise, "Star Trek," for rival studio Paramount Pictures. The next installment in that series, "Star Trek: Into Darkness," is set to hit theaters May 17.

But he has long been known as a "Star Wars" devotee. Abrams spoke about the plot of the original "Star Wars" in the lecture series "TED Talks" in March 2007, and reportedly became enamored of "Lost" co-creator Damon Lindelof partly because Lindelof was wearing a "Star Wars" T-shirt when they first met.

In 2009, Abrams told the Los Angeles Times: "As a kid, 'Star Wars' was much more my thing than 'Star Trek' was."

In Friday night's statement he called it an "absolute honor" to get the job.

"I may be even more grateful to George Lucas now than I was as a kid," Abrams said.

Lucas himself said in the statement that "I've consistently been impressed with J.J. as a filmmaker and storyteller. He's an ideal choice to direct the new Star Wars film and the legacy couldn't be in better hands."

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Labor Relations Board Rulings Could Be Undone

By ruling that Mr. Obama’s three recess appointments last January were illegal, the federal appeals court ruling, if upheld, would leave the board with just one member, short of the quorum needed to issue any rulings. The Obama administration could appeal the court ruling, but no announcement was made on Friday.

If the Supreme Court were to uphold Friday’s ruling, issued by the United States Court of Appeals for the District of Columbia Circuit, it would mean that the labor board did not have a quorum since last January and that all its rulings since then should be nullified.

Many Republicans and business groups applauded Friday’s ruling. They often assert that the appointments Mr. Obama made to the board have transformed it into a tool of organized labor. But many Democrats and labor unions say Mr. Obama’s appointments restored ideological balance to the board after it was tipped in favor of business interests under President George W. Bush

Mark G. Pearce, the board’s chairman, issued a statement saying the board disagreed with the ruling and suggested that other appeals courts hearing cases about the constitutionality of Mr. Obama’s appointments could reach a different conclusion.

“In the meantime, the board has important work to do,” said Mr. Pearce, whose agency oversees enforcement of the laws governing strikes and unionization drives. “We will continue to perform our statutory duties and issue decisions.”

Unless the Senate confirms future nominees to the board — Senate Republicans have blocked several of Mr. Obama’s board nominees — Mr. Pearce will be the only member left if Friday’s ruling is upheld. The board has five seats.

Representative Darrell Issa, a California Republican who is the chairman of the Oversight and Government Reform Committee, issued a statement that urged the recess appointees to “do the right thing and step down.” He added, “To avoid further damage to the economy, the N.L.R.B. must take the responsible course and cease issuing any further opinions until a constitutionally sound quorum can be established.”

The three disputed recess appointees included two Democrats, Sharon Block, deputy labor secretary, and Richard Griffin, general counsel to the operating engineers’ union; and one Republican, Terence Flynn, a counsel to a board member. Mr. Flynn resigned last May after being accused of leaking materials about the group’s deliberations. Another Republican member, Brian Hayes, stepped down when his term expired last month.

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Violence Flares on Anniversary of Egypt Uprising

CAIRO (Reuters) - Hundreds of youths fought Egyptian police in Cairo on Friday on the second anniversary of the revolt that toppled Hosni Mubarak and brought the election of an Islamist president who protesters accuse of riding roughshod over the new democracy.

The January 25 anniversary showcased the divide between the Islamists and secular foes hindering President Mohamed Mursi's efforts to get a stagnant economy moving, and reverse a plunge in Egypt's currency, by attracting back investors and tourists.

Inspired by Tunisia's ground-breaking popular uprising, Egypt's revolution spurred further revolts across the Arab world. But the sense of common purpose that united Egyptians two years ago has given way to internal strife that has only worsened and last month triggered lethal street battles.

Opponents of Mursi and his Muslim Brotherhood allies began massing in Cairo's Tahrir Square to revive the demands of a revolution they say has been betrayed by Islamists.

Police battled hardcore protesters who threw petrol bombs and firecrackers as they tried to approach a wall blocking access to government buildings near the square in the early hours of the morning.

Clouds of tear gas fired by police filled the air. At one point, riot police used one of the incendiaries thrown at them to set ablaze at least two tents erected by the youths, a Reuters witness said. Clashes between stone-throwing youths and the police continued in streets near the square into the day.

Ambulances ferried away a steady stream of casualties. The health ministry said 25 people had been injured since Thursday in clashes around Tahrir Square.

Some protesters pledged to march to Mursi's palace.

Thousands more protested against the Brotherhood in cities across Egypt including Suez, Ismailia, Port Said and Alexandria.

The Brotherhood decided against mobilising in the street for the anniversary, wary of the scope for more conflict after violence in December that was fuelled by Mursi's campaign to fast-track an Islamist-tinged constitution.

"The people want to bring down the regime," declared banners in the square, echoing the main Arab Spring slogan of 2011. "Save Egypt from the rule of the Supreme Guide," said another, a reference to leader of the Muslim Brotherhood, Mohamed Badie.

Mursi, in a speech on Thursday marking the Prophet Mohammad's birthday, called on Egyptians to mark the anniversary "in a civilised, peaceful way that safeguards our nation, our institutions, our lives".

"The Brotherhood is very concerned about escalation, that's why they have tried to dial down their role on January 25," said Shadi Hamid director of research at the Brookings Doha Center.

"There may very well be the kinds of clashes that we've seen before, but I don't see anything major happening that is going to fundamentally change the political situation," he said.

BADIE CALLS FOR "PRACTICAL, SERIOUS COMPETITION"

With its eye firmly on forthcoming parliamentary elections, the Brotherhood marked the anniversary with a big charity drive across the nation. It plans to deliver medical aid to 1 million people and distribute affordable basic foodstuffs.

Writing in Al-Ahram, Egypt's flagship state-run daily, Brotherhood leader Badie said the country was in need of "practical, serious competition" to reform the corrupt state left by the Mubarak era.

"The differences of opinion and vision that Egypt is passing through is a characteristic at the core of transitions from dictatorship to democracy, and clearly expresses the variety of Egyptian culture," he wrote.

Still, Mursi faces discontent on multiple fronts.

His opponents say he and his group are seeking to dominate the post-Mubarak order. They accuse him of showing some of the autocratic impulses of the deposed leader by, for example, driving through the new constitution last month.

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