Sega Toys will start selling in April a small robot dog called idog.

The idog plays about 70 stored children's songs and other favorites. A sensor on top of the dog is used to control the tmep of the song playback. The idog is also able to mimic the owners voice with sound that have similar wavelength. And not to forget the idog has the iPod look, what else.

Sega Toys will sell the idog for 4,179 yen (~$40) in Japan in April. Nikkei.Net reports that Sega Toys will license the idog to Hasbro for US distribution later this year.
More details on Nikkei.Net (subscription) and on ASCII (Japanese).

UPDATE 04/02/05:
AudioCubes sells the iDog for $89.00.