According to Vtech, there are eight ways to play Gadget, It's a digital camera, movie maker, MP3 player and FM radio. Kids can also play games, download content from the Internet and send voice and text messages. Gadget features a high-resolution color screen and enough internal memory to store 100 photos, 26 songs or 20 minutes of digital video.

Kids can also connect Gadget to the computer to download and print out their pictures or to the TV to show their movies. Beth Pagano with Vtech said Gadget marks the company's expansion into entertainment products for kids. "Young kids are already buying iPods and cell phones, so we thought this would be a good fit," she said. Gadget is expected to hit stores in late August and will retail for $99.99.