Teddy Ruxpin is an electronic children's toy in the form of an animated-talking bear-like creature brand-defined as an 'Illiop'. The toy's mouth and eyes move while he tells stories about his adventures played on an audio cassette deck built into his back. While the character itself was created by Ken Forsse, the animated-talking toy was designed and built by Forsse’s Alchemy II, Inc. employees, including Larry Larsen and John Davies. Later versions replaced the cassette with a digital cartridge.
At the peak of its popularity, Teddy Ruxpin became one of the best-selling toys of 1985 and 1986. The 2006 version was awarded the 2006 Animated Interactive Plush Toy of the Year award by Creative Child Magazine. A cartoon based on the character debuted in 1986. More than 8 million Teddy Ruxpin toys have been produced. A live-action film adaptation is in development.
Conventional cassette tapes carry two audio tracks for stereo sound reproduction. Teddy Ruxpin cassettes use the left track for audio and the right track for a control data stream, which in the original 1985 version is encoded as Pulse-position modulation. The data stream operates the motors that animate the eyes and mouth, and it can also reroute the audio signal to Grubby, who is an octopede and the companion toy, by means of a proprietary cable. This allows the two toys to engage in pre-recorded interactions. Grubby only works with the original WoW versions of Teddy Ruxpin.
When a standard audio cassette is played in the second or third generation Teddy Ruxpin, the system detects it, ignores the right audio track, and leaves Teddy motionless. The production eject mechanism was designed by global design firm RKS Design. Early versions of the toy featured three servo motors, later reduced to two, and eventually to one.
After the September 1985 debut, various toy makers have produced Teddy Ruxpin over the years. The first was Worlds of Wonder from 1985 until its bankruptcy in 1988. The cut rights were then sold to Hasbro, and produced again from 1991 to 1996. Another version debuted in 1998 by Yes! Entertainment, and another version in 2006 by BackPack Toys. The latest edition was produced by Wicked Cool Toys.
Shortly after his debut, Teddy Ruxpin was recognized as the "Official Spokesbear for the National Center for Missing and Exploited Children" in 1985.
Teddy Ruxpin was launched in 1985 by toy manufacturer Worlds of Wonder. Then came the companion toy Grubby, different outfits for Teddy and Grubby, and several other non-animatronic companion toys and characters. This includes two different versions of the bird-like Fobs (one orange, one purple), which are hand puppets with a sock-like, extendable neck. Other hand puppets include the larger Wooly What's-It, three interchangeable Anythings (This, That, and The Other), Tweeg, and L.B. the Bounder.
Other items produced by Worlds of Wonder for Teddy Ruxpin are the Answer Box and Picture Show. Actress Joanna Kerns served as Teddy's spokesperson shortly after its introduction, while at the height of her fame as Maggie Seaver on the ABC-TV sitcom Growing Pains.
Teddy Ruxpin sales peaked in 1986. Worlds of Wonder launched a series of safety messages for children, with different partners including firefighters and the United States Lifesaving Association. WoW became the exclusive distributor for the launch of the smash hit Nintendo Entertainment System, based on leveraging the undeniable strength of Teddy Ruxpin and Lazer Tag.
To retailers who were bitterly adamant against hearing the words "video game" after having survived the video game crash of 1983, WoW salesman Jim Whims distinctly recalled delivering an ultimatum: "If you want to sell Teddy Ruxpin and you want to sell Lazer Tag, you're gonna sell Nintendo as well. And if you feel that strongly about it, then you ought to just resign the line now." Historian Steven Kent wrote: "Anyone who wanted to sell Teddy Ruxpin and Lazer Tag, including Sears and Toys R Us, was going to hear about the Nintendo Entertainment System." WoW received windfall sales commissions from selling the NES, and $800 million in back orders for the Christmas season, mainly for Teddy Ruxpin and Lazer Tag.
In 1987, Worlds of Wonder partnered with Wendy’s to launch a Teddy Ruxpin-themed Kid’s Meal promotion. These are similar to the miniatures produced by Worlds of Wonder, except they are smaller and flocked. Teddy Ruxpin characters joined the Ice Capades program, which toured the country.
In 1987, Worlds of Wonder’s executives misjudged the market, vastly overproducing Teddy Ruxpin at a time when interest was fading and the NES dominated consumer attention. Teddy Ruxpin parts orders strained company assets, a problem worsened when insider trading shook investor trust.
In response to devaluation, WoW issued Non-Investment Grade Bonds, commonly known as junk bonds, in an effort to buoy itself. Although there is some contention as to whether this strategy would have helped, the attempt was made moot by the 1987 stock market crash. Worlds of Wonder filed for bankruptcy protection and was liquidated in 1988. They went through a series of layoffs. The creditors continued to operate the company in receivership until finally closing in late 1990. By 1991, Worlds of Wonder had closed and the remaining assets were liquidated.
In 1991, the Teddy Ruxpin toy line was bought by Hasbro, which produced him under their Playskool line until 1996 using the redesign that had been implemented by WoW. This design is smaller and uses cartridges that resemble 8-track tapes, instead of cassette tapes.
From 1993 to 1995, Yes! Entertainment responded to Teddy Ruxpin with an "interactive video" animatronic toy released under the branding "TV Teddy". The TV Teddy system consists of a series of specially encoded VHS cassettes, an RF-transmitter that relays signals encoded on the video track to the toy, and an animatronic RF-receiver consisting of a loudspeaker, and two servos which provide much-simplified eye and mouth movements compared to both the WoW and Playskool versions. The VHS cassettes consist of original opening content specifically designed for Teddy to interact with, followed by previously released videos (among them The Berenstain Bears and titles from Family Home Entertainment) which are encoded with additional content for the animatronic toy.
In 1998, Yes! brought Teddy Ruxpin back to stores for a third time. The toy's size is largely the same as the Playskool version. Yes! returned to using the standard cassette tapes. A small Beanie Baby version of the toy was boxed with the Yes! Teddy Ruxpin based on the popularity of Ty's Beanie Babies at the time. This venture was short-lived, however, as Yes! Entertainment's corporate management and financial troubles ultimately resulted in Alchemy II withdrawing the licensing for Teddy.
In 2005, BackPack Toys announced a fourth version of Teddy Ruxpin, which replaced the audio tapes with digital ROM cartridges.
Wicked Cool Toys began production of a new version of Teddy Ruxpin in late 2017. This Teddy Ruxpin does not come with physical cartridges, instead being programmed with three stories inside of the toy. Additional stories are available for purchase in the mobile app.