Caramagic Ltd has just launched the MagicFriends Xmas app. The app lets children talk to Santa, Sam the Snowman, Candy the Elf, or Prancer using an iPad or iPhone.
Using a second iPhone or iPad connected via Wi-Fi, a family member can animate the character your child is talking to and hold a conversation with them. The app can change your voice to match each character so that you don't spoil the illusion. The controls for the characters are simple swipe or tap, so it is easy to make them jump, wave, wink, dance, and twirl.
You can download MagicFriends Xmas for free on the App Store.