As children increasingly put down traditional toys at earlier ages for flashier, higher-tech gadgets like Apple Inc.’s iPod, toy makers appear to have reached the following conclusion: If you can’t beat ‘em, join ‘em. 

At the American International Toy Fair in New York, toy makers signaled they’ve adapting to the changing marketplace, with many exhibitors showcasing PC-compati ble toys that can play music from an MP3 player.  

“The toy industry manufacturers and the youth product manufacturers really upped the ante in terms of looking at what kids of today are interested in and how to make toy products for that market,” said Reyne Rice, a toy trends specialist at the Toy Industry Association. 

Many are hoping the balancing act between technology and traditional play translates into strong sales.   

Hasbro Inc., the nation’s second-largest toy maker, previewed its “Power Tour Electric Guitar” at the fair, which not only teaches users guitar basics, but also functions as a speaker for their MP3 player. 

The company also introduced ”I-CY,” a robotic, dancing penguin that dances to music from an MP3 player. 

Meanwhile, Robosapien Media showcased the “WowWee,” a singing, dancing robot that plays MP3s, while Erector rolled out the Spyke, a robot equipped with voice-over Internet protocol (VoIP) and a video camera. 

And yeah, it too plays MP3s. 

Even rival fashion dolls Barbie and Bratz have jumped into the fray. 

Mattel Inc.’s Barbie brand introduced “Chat Divas,” a doll that can move and lip synch to music from an MP3, while MGA Entertainment updated its Bratz Big Babyz line with a doll that basically does the same thing. 

Even pre-schoolers can get in on the fun. 

Hasbro’s Playskool division previewed its “Made for Me” infant toy line at the fair, which includes an MP3 player that is pre-loaded with 50 songs. It gives parents the option of downloading more music.