An interactive toy is described that provides a physical representation of an avatar created by a user within a virtual or on-line gaming environment. The interactive toy comprises a unique identifier tag and an electrical circuit the electrical circuit comprising, an identifier tag sensor and an interface that provides a means for the toy to communicate with a computer system. The inclusion of the unique identifier tag allows for a portable toy to be produced that can act as both an identifier and a scanner and so provides for increased interaction within the real world for the users of the interactive toys. As a result such toys are able to record physical meetings that can be reflected as befriending events in the corresponding virtual on-line world.