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Thursday, October 29, 2026Oct 29

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Let’s get phygital: Physical toys with digital interaction are a multibillion-dollar industry

From G.I. Joe to Barbie to Treasure Trolls, collecting dolls and action figures has been a childhood rite of passage for decades, letting kids bone up on their hoarding skills while crafting imaginary adventures for their favorite pop culture characters.

In the last five years, however, a new generation of toys has emerged that employs baked-in technologies such as Bluetooth networking and near-field communication to transform those adventures from imaginary to interactive.

photo Andrew Morgan is seen here will all of his gaming figures.

Lumped under the umbrella term “toys-to-life,” these figurines bridge the gap between physical and digital play. By being placed on special plastic bases, they can be imported into video games, where they become playable characters that can be guided through adventures or used to unlock hidden content.

“These are more than action figures. They are interaction figures,” says Eric Hirshberg, the CEO of Activision Publishing in a 2011 announcement for “Skylanders Spyro’s Adventure,” the first entry in the wildly successful Skylanders toys-to-life franchise.

“We’ve given players a whole new genre that bridges the gap between the real and virtual worlds,” he continues. “From the first time a kid picked up a stick and pretended it was a sword, toys have unlocked kids’ imaginations. And how often have you wanted to bring those toys to life, to see them become animated and take them on an adventure? Skylanders … does just that.”