I was an intern at Fisher Price when they introduced the Pixter Color. I did QA on some of the games, the Dora one comes to mind. You can imagine the torture playing a level over and over.

The games were developed overseas (India I think?). I would send them bug reports in Mantis and overnight they would send a new build. Sometimes they would even fix the bugs. I would burn the builds on to EEPROMs and verify them the next day. The EEPROMS had a little round window so they could be erased in a UV box before programming.

Fisher Price used a video codec from Actimagine to fit video clips onto the game cartridges. That's how I learned about Virtualdub. I remember editing clips from a show called Winx.

The big competition was the Leapster LeapPad and they were trouncing us.

One fun thing the engineers did periodically was a toy teardown to see how competitors saved on cost. Cost was critical. They told me how Walmart basically dictates toy cost because they controlled the shelf space.