Since Kanji has already provided ample illustrations prior to Japanese traditional toys, I shall set the balance straight by executing examples of the modern ones.
Behold the ever-memorable digivices! Bet it makes you reminisce on the old days, huh?
The games(digivices included) and action figures were created by Bandai, a world wide toy company which originated from Japan. These digimon virtual pets were first released in 1997.
No doubt, one of the most popular games in Japan and the world today - Final Fantasy, created by Square Enix, a merge of three companies: the primary Square Enix Co., Ltd. based in Tokyo, Japan, with subsidaries Square Enix Inc. in Los Angeles, CA and Seattle, Wa and Square Enix Ltd. in London, England. Square Enix is responsible for video games such as the famous Final Fantasy Series(1987), Secret of Mana, Chrono Trigger, and many others.
This image was taken from a clip in Final Fantasy IV.
The Game Boy was invented by Gunpei Yokoi and released in Japan in 1989. It's the most succesful hand held machine ever and has sold in over 60 million copies.
P.S. Can I ask someone to post the first/oldest Japanese action figure ever made? I can't seem to locate the latter anywhere.. =(