AIBO is an electronic dog manufactured by Sony. The word "Aibo" is said to mean "companion" in Japanese.
It is powered by a 100MHz RISC processor, and is equiped with 16 MegaBytes of internal memory. It has an 180,000 pixel camera in its "eyes", and 18 different, flexible, joints.
The Aibo can "feel" several emotions (including surprise, anger, and sadness). It also has a way of "telling" the owner what it feels. It also has the ability to learn, and memorize, things.
They're shipping at about $3000 USD, which isn't really all that expensive. A real dog will probably cost more (considering you have to buy a new one every 10 years or so, and feed it).
No, this is not a marketing ploy, I just happen to find these things quite interesting.
Source o' knowledge: Sony Europe.