My dd 5 got one for Christmas last year (I think it was last year). Her lil sis likes to play too, but she's still a little too young to really play (2 3/4). We have gobs of games, but I've never paid $20 for a game. I didn't pay $60 for the v-smile either. I waited until close to Christmas and got what I thought was a great deal at Toys R Us that came with an extra free game or something like that. Not long after my local Meijer marked a v-smile down for around $40 and had their games on clearance! Obviously I returned the Toys R Us one.
Toys R Us every so often (like right now) has buy 2 get 1 free. Lots of places mark down the games when new packaging comes out or new games are being brought out. I've gotten games for $8-13. No way would I pay $20 each.
I think it's cute they have a pink one now for girls instead of just orange. We have orange. Regular v-smile hooks up to the tv. V smile pocket is portable, but can also be connected to the tv.
One reason I was willing to splurge is b/c I have 2 kids and might have more later, so it will get plenty of use. Plus, while it is fun and is a video game, it really is educational.
DD's fav games seem to be Cinderella, Little Mermaid, Dora, Pooh, and Nemo. We also have Care Bears, Toy Story, Barney, Blues Clues, Mickey Mouse, Elmo, and the alphabet game it came with. Yes, we have a lot!

I have a hard time passing up a good deal, and they made good Christmas/birthday gifts that don't take up much room! lol