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In practice that means dressing characters, decorating rooms, visiting shops and homes, and moving between locations building whatever situation interests you. Everything responds when touched, and the world is deliberately constructed so that almost any object can be picked up, moved, given to a character or combined with something else. The design principle is that nothing should be scenery — if a child reaches for it, it should do something.
This kind of unstructured play is genuinely different from most games, and it can be disorienting for players used to objectives. There is no progression to chase and nothing is withheld to be unlocked later. The compensation is that nothing can go wrong: a child cannot lose, cannot get stuck and cannot reach a screen telling them they failed. For younger players in particular, that safety is what allows the imaginative part to happen at all.
The audience is primarily children, and the format has proved remarkably durable because it maps onto how children already play offline. Physical toys have no win condition either — the stories come from the child, not the toy. What the digital version adds is a world too large and too varied to fit in a bedroom, available instantly in a browser tab with nothing to install and nothing that can be broken or lost.