User configurable interactive toy

An interactive toy including a reader for detecting a marker in a proximity of the interactive toy. The interactive toy also has a sensor for detecting movement of the interactive toy and a memory having programmed instructions and configuration data thereon. The programmed instructions are configured to control a response of the interactive toy to a detection of the marker, the response being defined at least in part by the configuration data. The interactive toy also has a processing unit configured to execute the programmed instructions according to the configuration data when the processing unit is in a play state. The processing unit is further configured to modify the configuration data in response to a combination of a detection of the marker in a proximity of the interactive toy, and a detection of a movement of the interactive toy when the processing unit is in a configuration state.