There's more than 50% off the Animagic Peanut Playful Pup at The Original Factory Shop right now, and they're selling it at £22 (plus £3.99 shipping to UK addresses).
I think these are seriously cute, and I had a puppy that could bark and walk when I was a child – and it's still in a box somewhere. I loved my puppy and suspect my daughter would love hers too, if I gave her one.
The Animagic Peanut Playful Puppy has a bone that she chomps, she barks and he wags his tail. If you stroke her head, she will raise her ear and tilt her head too. They say 'the more you play with him, the more playful he'll become'. I'm not sure how that works, but it sounds good. (Also, the description says 'he' but the packaging and collar are all pink, suggesting he's a she.)
S/he does require 4x C batteries, which are included, and they say it's suitable from 3 years and over.
The reviewers love it up to about the age of 8, and most people say that Peanut is bigger than you expect at first – which is true, when you look at the picture of the puppy with a child!
Thanks to saffy81 at HUKD