i-Buddy. This three inch tall USB powered gidget responds to Windows Messenger messages by flapping wings, twisting its body or pulsing lights according to the emoticons used. Obviously comes from the Nabaztag school of computer accessories, which means that it could rapidly become very annoying in the right circumstances (like the middle of a heated IM row). Around $32.00.
i-Buddy is specially designed for Windows Live Messenger (MSN Messenger) users. It is a physical representation of your buddy. You can program it to recognize a particular buddy account, and it will response to all messages and status events sent from your buddy. It is a 3-inches tall figurine connected to the computer using a USB cable. Specially designed in tiny size, so that it does not consume much space while you are at work. It is perfect to put on top of your monitor too.