Nurturing Nostalgia & Incubating Innovation

Date: 2025-01-08
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Reference: The Toy Book

Virtual Pets Are a Hot Item Worldwide

Digital pets, like Tamagotchi, became the “it” toy in the late 1990s and early ‘00s. Offering the possibility to raise your own character and carry it around with a simple clip to your belt, backpack, or purse, virtual friends doubled as a fashion accessory and desired responsibility.

Decades after the first craze, the demand for digital pets has grown and is prominent, with several companies answering the call.

Major players in the digital pet category include Bandai Namco Toys & Collectibles, Spin Master, Cra-Z-Art, and MGA Entertainment. While products like GigaPets and Tamagotchi have been a staple, other offerings such as Punirunes and Pixel Petz are recent additions to the toy department.

Source: Spin Master

The basic elements of the products remain the same as they did when they were first introduced — kids interact with a small version of a digital character, take care of it through feedings, playtime, and games, and then watch as it grows up and evolves in direct response to the user’s level of attention. 

As Jennifer Skewes, Vice President of Activities Marketing at Spin Master, explains, “The pet’s design should also be intuitive and accessible, with controls and instructions that make it easy to engage with. We also consider extended play value — adding layers of collectability and gamification to ensure kids are engaged and keep coming back, making the pet feel more like a long-term companion than just a short-term novelty.”

Tamagotchi was launched at FAO Schwarz in New York City in 1997. Source: YouTube

RETRO RESPONSIBILITY

Bandai introduced Tamagotchi to the international market in 1996, with a U.S. release the following year. According to The New York Times, FAO Schwarz sold 30,000 pieces in the first three days on the market, while QVC sold 6,000 in five minutes. Nearly 30 years later, caring for digital friends like Mametchi and Kuchipatchi is still integral to many kids’ and adults’ daily activities, with cross-generational interest fueling new and updated versions of the iconic devices.

Four Tamagotchi devices are currently offered in the U.S. market: the Original Tamagotchi, Tamagotchi Connection (introduced in 2004), Tamagotchi Nano (2018), and Tamagotchi Uni (2023). With each device, kids can feed their character, give it medicine, play games, flush after it uses the bathroom, watch it grow based on how they care for it, and more. The original product runs Generation 3 programming and is frequently released with new shell colors and designs. 

“Generational play is important because the parents of today were the ones that played with it the first time, whether it was the Original or the Connection,” says Tara Badie, Marketing Director at Bandai. “And it’s such a fond memory for the parents that they’re passing it on to their younger kids.”


Tamagotchi Connection — Sweet Charms is one of Bandai’s most recent Tamagotchi products. | Source: Bandai Namco Toys & Collectibles America

With Tamagotchi Connection, kids can make friends, exchange gifts, and play games with others. They can even get married, raise generations of Tamagotchi characters, and create their own digital families with others — without stepping into the large internet landscape. Years later, adults who grew up with the Connection can reenter the space, and parents can provide their kids with similar, safe experiences as Bandai continues to release new versions of the product. Three new Tamagotchi Connection devices — Translucent Pink, Neon Stars, and Sweet Charms — launch this month.

Source: Bandai

The popularity of digital pets has resulted in fan clubs dedicated to nurturing the devices. Virtual pet Content Creator Julie, known as toloveL on social media, is the Co-Host of the NYC Tamagotchi Club, where players meet up in New York City to discuss their pets and showcase their progress together. 

 “The meetings feel like a book club, but for virtual pets … people just want to come together and have common interests and share something they’re passionate about with others,” toloveL says. “In the case of nurturing pets, that’s kind of a nice vibe. It’s like an emotional support animal.”

Beyond nostalgia, Bandai has ignited a new passion for Tamagotchi with the advanced technology of Tamagotchi Uni (Unique, United, and Universal). These devices are now fitted with wristbands, a new addition to the Tamagotchi accessory line. Unlike other Tamagotchi products, the Uni devices connect to Wi-Fi, feature the Tamaverse, Tamagotchi’s metaverse, and offer global play.

“Kids are online, and obviously, we want to protect them, and our device allows them to go and see characters. We ensure there’s no actual communication from [the Tamagotchi Uni] so they can be safe,” Badie says. “But they can go in there and see characters from Mexico, Spain, Japan, and Korea, and they see the different languages that are popping up. So, it has this universal global feel. There are more games. They can travel to the Sahara and travel to Venice and travel to all these fun experiences through their characters.” 

Bandai Namco’s booth at NYCC 2024 included Tamagotchi merchandise, devices, and activiations. | Source: Bandai Namco

Tamagotchi Uni has several designs, including Angel Festival, Monster Carnival, and Sanrio. These themed devices include tickets to similarly themed festivals or Sanrio Puroland, where kids can collect treats, find special items, and more with their digital characters. 

toloveL adds, “It is such a wonderful feeling right now … specifically, if we’re just talking about the Tamagotchi brand, this is our most exciting moment in 20 years. It really does feel like all of a sudden, it is popping off everywhere.” 

As the product line grows, the fandom also expands. Bandai recently dedicated a large space to the brand at New York Comic Con (NYCC). 

PIXELATED PLAY

In addition to Tamagotchi, another device favored by ‘90s kids has returned: GigaPets. Parents remember their first experience with CompuKitty, and their interest drove Top Secret Toys to reintroduce the character for its 25th anniversary. The buzz for GigaPets is one reason why Cra-Z-Art recently acquired the Chicago-based company.

“Millennials want to capture the nostalgia of GigaPets, and they again want to experience what they grew up playing with and also want their kids to experience the same play pattern — it’s an emotional response,” says Lawrence Rosen, Founder and Chairman of Cra-Z-Art. “Although the gameplay is greatly enhanced, it revolves around the same principles.”


CompuKitty returns with an updated GigaPets handheld device. | Source: Cra-Z-Art

The new CompuKitty GigaPet devices also feature an additional pet, StarCat. Beginners can take care of StarCat, who answers questions about the future, and veteran digital pet owners can give their attention to CompuKitty. The GigaPet line also includes Floppy Frog, Pixie, and Bit Bunnies. Bit Bunnies also include multiple pets, as the baby turns into an adult and has two more babies. 

The collection also includes a Pixel Puppy, Cryptids, and an upcoming Troll, so every type of kid has a character they will love.

DIGITAL PETS, PHYSICAL TOUCH

With the new generation of digital pets, companies are breaking the barrier of physical and digital play. Spin Master launched Bitzee in 2023 and produces Punirunes, a toy that Japanese company Takara TOMY brought to market in 2021. Both products focus on physical interaction and tactile play. 

According to toloveL, these devices have infiltrated the NYC Tamagotchi Club network. “I think that what’s so cool about the virtual pet space as a fandom is that it’s kind of understood that not everybody will be running the same virtual pets at once. Even though we technically call ourselves the NYC Tamagotchi Club, it’s not just Tamagotchi. People will bring Punirunes; they’ll bring GigaPets.” 

Bitzee devices feature different licensed characters. | Source: Spin Master

If kids and collectors want a toy that provides space for more physical actions, they can add Bitzee to the mix. When players open Bitzee pods, they’ll see LED tiles flap continuously to create a moving character. Kids can touch, swipe, tap, and even tilt these tiles to interact with their digital friend. Each pod includes numerous characters who can evolve, games, and more. 

“Bitzee breaks the digital pet out of the screen as the characters come to life with an innovative, full-color display you can touch, feel, and interact with,” Skewes explains. “There is also an added element of collectability which didn’t exist before — with many characters housed in one toy. Punirunes combines popular elements of caring for a digital pet with an added tactile play — a squishy button — that makes the pet on the screen react as if you’re really touching it.”

Licensed Disney characters, such as Stitch, Minnie Mouse, Bruni, and Flounder, and non-licensed pets, such as a Yeti, Phoenix, Cat, and Bunny, are available. Each one has different personality traits, responses, and styles that help the caretaker establish a real bond — something kids yearn for, and Spin Master knew it could deliver.

“We saw an opportunity to create something that blends the best of nostalgia with technological advancements, offering a more engaging, hands-on experience. Bitzee fills that whitespace by introducing a digital pet that not only responds to touch but also offers a personalized, interactive experience, making it feel like a real companion,” Skewes says. “It’s designed to captivate today’s tech-savvy generation while honoring the charm of the original digital pet concept.”

MGA Entertainment feeds into the emotional connection and physical play combination with the carrying case of its product, Pixel Petz. These toys are designed to look like digital pets on and off the small screen. 


Pixel Petz integrate the screen into the dog-based design. | Source: MGA Entertainment

“You have to build that sentimental component,” says Josh Hackbarth, CMO of MGA Entertainment, noting that Pixel Petz’s main screen is the animal’s face while the ears are the two controllers. “The sensor on its head allows you to feel their touch, and then the nose is a button, so you’re interacting physically with your corgi or Dalmatian.” 

Each device features more than 100 emotions and 11 personalities and will mimic a user’s tone if they press and hold the nose. The pets will even interact with each other when two devices are near. At the end of playtime each day, kids will have a unique experience that’s different from their siblings or friends — and the special case design will make it feel like they’re still with the digital friend, even when it’s not in use. 

Source: MGA Entertainment

“As to toy manufacturers, as [with] entertainment providers, we’re all competing for that kind of mind share with the kids, especially when they have more power than a space shuttle in the ‘80s in their pocket … with something like Pixel Petz, what we try to do is [say] ‘Yes, it’s got technology in it, but it is not a technology device,’” Hackbarth says. “So we try to create that, as I mentioned before, that emotional connection. So you feel like it’s almost like a stuffed animal or something like that, where you have this emotional attachment, and it doesn’t feel like you’re just picking up a phone or a tablet to play a game. You’re more playing with the toy.”

HOLDING SPACE FOR VIRTUAL FRIENDS

Kids, collectors, and adults with a taste for nostalgia are welcoming many people into the digital pet space. In addition to the toy box, digital pets have become trendy in popular culture. Fashion creators and influencers can use Tamagotchis as Y2K accessories, clipping it to their belts and jeans as users did decades ago. 

In season 5 of Schitt’s Creek, which aired in 2019, two siblings rehash their relationship with Tamagotchi, with Alexis Rose stating, “You left me with six of them, David. Taking care of that many is like a full-time job.” David Rose replies, “I left you with six adult Tamagotchis in perfect health! And by the time I came home, they were all dead. You have to, like, actively murder them in order for that to happen!” 

The New York City Tamagotchi Club meets to discuss digital pets. | Source: NYC Tamagotchi Club

Whether someone purchases a digital pet product for themselves, their kid, or as an accessory for their next outfit, the toys are still in style for two main reasons: the desire to nurture and the love of nostalgia. 

“Digital pets have a unique appeal that resonates with consumers because they combine elements of play, caretaking, and companionship in a way that feels rewarding and personal,” Skewes adds. “These pets go beyond screen time by allowing kids to build real-life skills like empathy and patience in a fun, low-maintenance way.” 

As for the true secret to these pets’ longevity at retail and with players of all ages, Badie may have the answer: “Nurturing never goes out of style.”


The Toy Book — January 2025

A version of this feature was originally published in The Toy Book’s 2025 International Innovation Issue. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options!


The post Nurturing Nostalgia & Incubating Innovation appeared first on The Toy Book.

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