This is Woogie, "the Huggable Case and Media Player for iPod touch and iPhone" that allows parents to keep their kids glued to electronic entertainment while keeping the latter safe from drool, food, and play-doh.
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Just put the iOS device inside the integrated sleeve with transparent, touch-sensitive screen protector, and watch the kids' eyes go catatonic with all that passive entertainment and pseudo-educative games!
It even has a built-in speaker powered by 2 AAA batteries. [Griffin]