On Thursday, Mattel unveiled Barbie Girls, a doll-shaped MP3 player that turns into a live character at BarbieGirls.com, a Web site where girls can interact with each other in a manner reminiscent of Second Life, the virtual world for adults.
The company hopes the new toy, which brings together Web surfing, shopping and music downloads, will cool demand for rival MGA Entertainment's sassy Bratz dolls—a line of big-headed, skinny dolls with scant, trendy clothing.
The world's largest toy maker is also taking aim at Apple Inc.'s iPod music players and Ganz's Webkinz, furry animal toys that come alive online.
The official launch of BarbieGirls.com came a week after the company gave it a public test run.
Toy analysts say this latest addition to the 48-year-old Barbie line should be a hot seller, helping the brand reverse nearly five years of declining sales.
"If Mattel's online community is successful—with penetration similar to Webkinz—we estimate maximum annual sales potential of about $100 million, or about 3 cents a share," Oppenheimer & Co. analyst Lisa Bolton Weiser wrote in a research note.
Retailers said earlier this month that demand for Webkinz, which are sold at specialty retail shops such as Hallmark and American Greetings Corp., has skyrocketed.
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