Eventually, it’s probably safe to assume that all electronics will be in some way connected to the Internet. As long as you’re not worried about a Skynet-style Terminator apocalyptic future, that’s probably a good thing. With that in mind, the online gaming network SGN began working on a secret project to connect children’s toys to the Internet. Today, ToyBots is being unveiled at TechCrunch50.
Basically, the ToyBots’ vision is to be the platform that any toy maker can use to make sure their devices have a portal to the Internet, and all the data potential that comes with it. SGN and ToyBots founder Shervin Pishevar describes the key idea as a “Kindle of toys” or an “iPhone inside of a toy.” The thought there being that the Kindle works so well because of the network behind it that allows the device to seamlessly connect to Amazon’s extensive collection of books. Likewise, ToyBots is announcing a partnership with a major telecom provider (they’ll announce in the next week or so) that will allow toy makers to set up pre-paid service for their toys (that is, have wireless costs baked into the product, like the Kindle, rather than making customers pay a monthly fee).
ToyBots’ demo product is called the Woozee. Basically, it’s a cute stuffed toy that can transmit messages sent over the Internet. So if a parent is away on a business trip, but wants to be able to read to their child at night, they can record themselves reading on something like their iPhone (via an app) and send it to the toy. The child would get an alert via the toy that a message is there. Then, when they’re ready, they can play it back, via the toy (think: Teddy Ruxpin, but with a parent’s voice rather than a stranger’s, and it has an accelerometer!). A sender could also set message to play for a specific time; the child’s bedtime, for example.
There is also a website component to this Woozee that allows for further functionality. You can have a network of friends with their own toys, for example. This is kind of like the Chumby, as it’s a web-connected device with a website component where you can manipulate it as well.
Alongside Pishevar, Carrie Feigel, Senior Director Marketing, presented today.
Expert Panel Q&A (paraphrased)
The experts: Don Dodge, Yossi Vardi, Ron Conway, George Zachary, and Jason Hirschhorn.
Q: Who are you selling to? And will you let Obama speak to children through this device?
SP: Yes, Obama will be able to speak to the kids. The number one audience is the developer community to make all kinds of toys. We’d like the major toy companies to get on board.
Q: How important is the platform versus the toys? I want a Chucky toy.
SP: I want a Chucky toy as well. A lot of different audiences can be reached with this. We hope it’s similar to the App Store with the iPhone.
CF: There’s a big market for people who want to get their favorite toy with this tech.
Q: How does Spongebob get on this?
CF: He would get his own toy and cotent.
Q: Do you make royalties from toy developers?
CF: That’s a part of it, but also a partnership.
SP: We don’t want to build the toys ourselves. We want to be the gaming cloud.
Q: Will you open this to anyone, or will you control this? What about porn?
SP: We’ll leave that to someone else to work on.
Q: What’s the security?
CF: There would have to be careful controls, we would approve apps, and manufacturers would have a say.
Q: Big challenge crossing the virtual world to physical world with a toy.
CF: Club Penguin started virtual then went physical.
Q: Invest/take another meeting/pass?
GZ: Second meeting
JH: Same
RC: Get retailers
YV: We need better toilet seats first!
DD: Nothing more to say than what Yossi did.
Video:
Other Coverage:
TC50: Toybots lets toys come to life with Internet connectivity VentureBeat.
ToyBots – Connected Toys Of Some Sort #TC50 Techgeist.
Quick Thoughts from TC50: ToyBots Startup Marketing Blog.









Nice job MG. The demo isn’t even done yet and you’ve got the post up.
I think this is pretty cool.
Could someone at the venue tell someone near thi mic (is M.A.?) to stop playing with the chips.. the sound is disturbing..
ToyBox is scary. I would rather my kids use a netbook or laptop, instead of a toy. A toy is for playing, not for communication.
Why not let your kids decide? Remember kids like to talk to toys. They’re not like adults. To a kid, a toy is a living personality. Now, they don’t just have to imagine their toys talking back to them- they really will!
http://www.amusis.com
Creepy-tastic!
Now doing the iMo post before they demo would be amazing.
Now that’s a great idea… until the spammers figure out how to hack it. Imagine the toys spewing out advertising for More toys… to hell with the spammers, the maker of the toys will start doing it rather soon after the initial cost has been used up! (Hacking potential, YIKES, some perv leaving disgusting messages via a toy)… I guess I’m a little cynical about this type of thing… do you think?
Hi Folks,
There is an interesting talk at Stanford GSB on AI. Panelists include WillowGarage, Evolved Machines and Siri. Check it out http://bit.ly/t2F7q
This is NOT a startup TC. This reeks of Yammer all over again.
I have a grudge against SGN. On many facebook games they made, they made a great game, and then pulled support (making the game fall down the tubes)
if the founder built the “storytelling pillow” his daughter wanted, he might have something. Think Kindle for kids with a Netflix/Roku Player headless interface for streaming low-bitrate audiobooks. Now that would be cool and compelling.
This thing: it’s like startup whiteboard hell. Hey, let’s do this, let’s add this feature, etc. etc. Leapfrog has been doing this kind of thing (or trying) for 10 years, and they struggle every day.
I don’t think the team, unfortunately, understands how nasty and difficult the retail toy market really is. I wish them luck.
It’s a bit strange that I’ve picked another “kids targeted” startup from the second batch of startups as my favorite – kids are a notoriously difficult market to acquire online. But in the case of ToyBots, I believe they are targeting a fantastic opportunity. It is likely that connected toys will be the next generation in toys and I love their example of having grandma read a story to the grandkids through the toy.
I believe Webkinz laid out a good marketing roadmap for this type of startup. My kids couldn’t walk into a Justice (previously called Limited Too) without asking for another Webkinz. I didn’t mind buying a stuffed animal, but am a little more hesitant to offer the kids my credit card for online purchases. From a business perspective, I was intrigued when my kids ripped off the virtual currency and threw the toy into the corner – never to be played with again.
ToyBots can create a tighter link between toys and a web experience than Webkinz, but leverage the same types of marketing channels. My recommendation would be to link the licensing to the marketing opportunities.
Read more: http://startup-.../#ixzz0R6xNcT44
Two years ago, SGN and Zynga were in basically the same position. Today, SGN is struggling to find direction and Zynga is generating $20MM/month. SGN created traditional games on the iPhone and failed. They created a Wii knock-off on the iPhone and failed. Now, they’re trying to imitate Webkinz…I will bet that they will fail again. Time to fire the management team and bring in somebody new to try and salvage Greylock’s investment.
One primary issue I see with this: they are trying to build a platform where the cost of development for this platform is extremely high. Why will toy makers assume the risk?
+1,000,000
SGN made over $1 million in 8 weeks selling FAST- one of the most advanced social, multiplayer 3D jet fighting games ever bringing console quality games to the iPhone. SGN’s games on are on 1 in 3 iPhones and iPod touches in less than a year and half. That is pretty impressive for the new social mobile gaming space. SGN decided to focus on social mobile games for the long haul. Zynga focused on Facebook alone. They are different companies and different paths that will lead to long terms wins for investors.
Toybots is an incubation project that looks like it will be spun off and generate even more attractive returns for investors.
There will be many winners in the social gaming space across multiple focus areas and SGN, Zynga, Playdom, Playfish are some of the leading companeis across these areas. Trashing companies that are working hard to push innovation and extend markets will lead to bad karma, my friend.
What security will be in-place to keep creepy uncles who are facebook friends out of your children’s networked Furbys?
Now that’s a great idea… until the spammers figure out how to hack it. Imagine the toys spewing out advertising for More toys… to hell with the spammers, the maker of the toys will start doing it rather soon after the initial cost has been used up!