Interactive Toys Prepare for Battle

Hot competition among interactive toys for the holidays. Microsoft has added to it's ActiMates line of toys that interact with computer programs, videotapes and TV. Joining Barney are the new Arthur and D.W. characters. They have expanded vocabularies, play games, tell time, work as alarm clocks and even sing happy birthday when they're programmed with your child's special day. The ActiMates sell for about a hundred dollars without the add-ons. The new competition comes from a smaller animatric toy from Tiger Electronics... (sound) It's called Furby....

"When the child turns him on he'll say ...hah...me lo kotay...or my name is Little Tree. And the child establishes his first bond with the pet through Furbish."

Marc Rosenberg of Tiger Electronics, now a part of Hasbro. Toy industry experts are predicting Furby will be the hot toy this season...but, says Rosenberg...

"The jury's still out. We've got to get them in kids' hands. The first kids have seen them for the first time and response has been great. And a bunch of grownups at Toy Fair loved the product but as I've often said, I'd rather put our fate in the hands of an eight year old versus any marketing exec anytime."