Intel and toy maker Mattel have announced the signing of a letter of intent to jointly develop next-generation "PC-enhanced toys."
The two companies did not elaborate on what kinds of high-tech toys they plan to collaborate on, but said that "smart" playthings are the future of the toy industry.
Mattel designers and Intel engineers will work together to combine toy design know-how with the latest PC technologies, the companies said.
With the pact, chip giant Intel may be taking its cue from software leader Microsoft , whose interactive Barney toy reportedly has already met with some success in the market place.
Intel officials over the past few months have also expressed their surprise over the popularity and strong demand for the spacesuited Bunny People dolls the company introduced as part of its Pentium II promotion campaign last year.
Intel, based in Santa Clara, California, can be reached on the World Wide Web at http://www.intel.com/.