Bandai announced a new generation of their mega-hit Tamagotchi.

News Update: 08/12/04: Tamagotchi Connection now available

The more advanced Tamagotchi's will be available in March in Japan. The Tamagotchi was first launched in 1996 and had sold 40 million units within a couple of years. The Tamagotchi hype came sudden and faded also pretty quickly.
The new Tamagotchi's will have a infra-red interface and the digital pets can visit each other to bring presents and start romances. The new Tamagotchi can have kids too.
The price will be around $20. Visit Bandai's Tamagotchi Web Site.
I am not sure if it will be another block buster hit for Bandai like last time around.