Experts have warned that the demand for latest gadgets and fashion-based entertainment by tech savy girls is steadily pushing dolls to their grave.
Kids were said to be no longer interested in traditional toys, according to market research company Gfk.
Barbie, the world's best-selling doll, has been witnessing a shrinking fan base with a 15 per cent drop in sales, reports The Age.
Child psychologist Michael Carr-Gregg laid the blame on the erosion of childhood.
He said: "None of my clients tend to want to be their chronological age any more. 'We now have reached a point where five-year-olds want to be 10, 10-year-olds would rather be 14 and 14-year-olds want to be 21."
George Van Horn, of business information analysts IBISWorld added: "There's a huge increase in the so-called age compression phenomenon, where children leave traditional play categories at younger ages for more sophisticated products.
"Kids these days are ... tech savvy and get bored easily. There's a large demand for interactive electronics, like Nintendo DS and PlayStation."