Now other companies are aping the gimmick. Russ Berrie U.S. Gift launched its own Shining Stars line of soft toys in April. These plush toys come with an online avatar and the chance to name a star through the International Star Registry. Andy Gatto, the company's CEO, said a new Shining Stars account gets created every 22 seconds.
Disney also found success promoting real-world merchandise with virtual fun and games. Disney's Virtual Magic Kingdom is based on the company's physical parks, but is filled with minigames instead of rides. It now boasts 2.5 million users.
Like Webkinz, Disney's virtual world is the bait: The profit comes from real-world promotions and merchandising. Tourists engage in quests in Disney's real theme parks to earn digital exclusives online, and the parks sell some items, including a line of T-shirts, that come with online duplicates for avatars to use.
"We were interested in taking the concept of Disneyland or the Magic Kingdom and extending it online so this kids audience could have contact with Disney theme parks every day, all day long," said Paul Yanover, executive vice president and general manager of Disney Online.
When Expedition Everest opened at Animal Kingdom last year, for example, a month of events were launched at the Virtual Magic Kingdom, and several new virtual products tied to the ride were released.
Disney also has found success with Toontown, a world loosely based on a section of Disneyland. Geared toward virtual gaming, Toontown has a "velvet rope" model: Users can visit some areas for free but need a paid subscription, at $10 a month, for unlimited access. The site has attracted more than 17 million users since its 1998 launch, and a similar Pirates of the Caribbean game is in the works for next year.
Ultimately, each venture will succeed or fail on the quality of the website, according to Toy Wishes' Silver. But to some critics, child-oriented gaming sites bring concerns that sexual predators -- like the sex offenders MySpace is trying to rid itself of -- may sign into the Webkinz world.
Webkinz and Shining Stars fight creeps by limiting chat capabilities. While chat is widespread in the Virtual Magic Kingdom, Disney keeps numerous administrators eavesdropping at all times.
These concerns seem unlikely to stop evolution in the marketplace. Russ Berrie's Gatto said the toy industry has always been at the mercy of trends, and has been very responsive to the change in children's habits.
"This really represents a new play pattern, and it is a pattern in its infancy," he said. "Over the next few years, it is just going to get more prevalent in this business."
Toy Fair Resembles CES for Kids
