"Kids can actually talk to their parents on their devices," Schacht said "They can send a text message, they can send a picture."
The Kurio Touch 4S is similar to an iPod Touch, but runs on an Android operating system.
It offers parental controls and comes pre-loaded with more than 30 free games and apps, and ear buds built for a child.
CNET technology expert Dan Ackerman said technology in toys goes way beyond tablets, though.
"We see a lot of toys aimed at kids now that echo a lot of the technology that adults use, so things have touch screens, things have internet connectivity," Ackerman explained. "Kids kind of want to mimic what their parents are doing."
"We're seeing all this technology appear in toys for our youngest children, and it's really giving them the skills they need both for school and eventually for everyday life, but in a fun way," Schacht added.
Experts call it "edutainment" and it ranges from the new LeapReader reading and writing system that is designed to teach toddlers to write.
Also on the list: Zoomer, a dog that responds to voice commands. Or RoboMe , which lets you use your iPhone or iPod touch to customize the robot.