Ugobe introduced At the DEMO 06 their first designer life form Pleo (Photo shows Pleo in his regeneration bed).

Pleo is a 1-week-old camarasaurus sauropod (long neck dinosaur). Ugobe's patented robotic motion platform enables Pleo to move in a fluid, lifelike way, while behaving completely autonomously. Pleo features nearly 40 sensors, including infrared and stereophonic sound.
Pleo can convey emotions through motion and sound and is aware of himself and his surroundings. On top of that the little artificial toy creature evolves in behavior over time.
Pleo's simulated emotions include: joy, aggression, sorrow, and fear. He can also yawn, sigh, sniff, sniffle, snore, cough, hiccup, and sneeze - I definitely want to see this dino sneeze.
One open question remains, Will Pleo grow-up to be a 23 feet tall camarasaurus sauropod? Ugobe developed a Life Form Operating System (LIFE OS), a vocabulary of accurate responses to sensory input. The LIFE OS is layered with Organic Variants Code. Using the OVC, subtle variations are mapped onto the neuronetics of each Life Form born.
The company already has $18 million in purchase orders and the Furby co-inventor Caleb Chung on its board. If Ugobe is successful with Pleo this Holiday season expect more live like toy creatures to roam your house soon.
Pleo will be available in Q3 2006, in time for the holidays, and will MSRP for $199.
More details in this Ugobe press-release. See this video of Pleo in action on CNET.