Toy companies believe machine-to-machine technology will move their new generation of products across generations: They have begun investing in connected toys that would link to Wi-Fi networks. For example, Meccano has developed a surveillance robot that users control via a Wi-Fi connection. "Mobile devices and smartphones are giving children more ways to play than ever before," said Scott Jochim, the founder of Digital Tech Frontier, whose POPAR Toys unit is making augmented-reality technology a major part of its product line.

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