From Pleo the robotic dinosaur, below, to stuffed animals, companies are trying to revive the industry by infusing traditional toys with the latest technologies and linking them to the Internet.
This $349 baby Camarasaurus is among the latest toy gadgets you’ll see in toy and electronic stores in the next few months. It has no external wires, no remote control, but this little fellow, called ‘Pleo’, will show emotion and interact with its owner in a variety of dino sounds.
The deal is that Pleo will pull down new sounds and behaviors from a web site, it appears this is going to be a common theme with a lot of the holiday toys this year and it’s about darn time, too! 
Link to the Chicago Tribune with much more.
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I checked it out, lots of good information over there.