Are smart toys spying on kids and stealing their imagination?

Last weekend, I saw my first Christmas ad. And what a Smart Christmas it will be, judging by the haul on offer. Over the past year, companies have been teasing the various connected must-haves for the holidays: bots that can respond to kids' questions and movements, and capture audio and video; an imitation smartwatch that chats with other devices over Bluetooth; not to mention the Barbie Hello Dreamhouse, a pink-and-white smart house for the iconic doll. Not everyone is excited about the intelligence creeping into kids' toys. Privacy activists and developmental psychologists have objected on grounds ranging from security and privacy to fundamental worries about the nature of play.