An entertainment system comprises a remotely controlled toy having a video camera operable to capture video images of a real environment and an entertainment device operable to communicate using a data communications link with the remotely controlled toy, in which the device comprises transmitting means operable to transmit, via the data communications link, control data to the remotely controlled toy that relates to the control of the remotely controlled toy, receiving means operable to receive, from the data communications link, video images captured by the video camera—of the remotely controlled toy, detecting means operable to detect a real environment feature within the real environment, processing means operable to generate a virtual image feature in dependence upon the detected real environment feature, and displaying means operable to generate a combined display of the captured video images and the virtual image feature such that the virtual image feature is arranged with respect to the video images so as to correspond to the position of the real environment feature within the real environment.