What is the total addressable market for a Disney/Star Wars branded e-pet droid? Seeing the kids pull a robot with this much 'personality' on a leash made it seem like an obvious use case. The robot wouldn't have to be that cheap to be less expensive than buying and caring for a dog. It has to be as adorable as this robot though.
Dog's don't become superseded by next year's flashy model, and owners who become bored of them can't put them in the loft to gather dust. I suspect the target market will never be the same as real pets. Maybe you could spin those things as positives.