Abstract: Talking toys perform simulated conversations with one another. The toys each include a forest of decision graphs. The forest of decision graphs is the same for each toy. Each of the decision graphs corresponds to a conversation and includes a number of nodes, each of which corresponds to a portion of the conversation. The nodes also include one or more contexts which connect the nodes to children nodes. As a result, the selection of the context directs the progression of conversation. The toys select a decision graph/conversation that includes all or most of the toys as participants. The conversation is then performed as the toys traverse the selected decision graph. The toys transfer messages back and forth via a wireless transmission and reception arrangement as they traverse the decision graph. The toys play the portions of the conversation through a speaker.