The Disney Channel character Hannah Montana is "hot as a pistol," Bob Giampietro, a senior vice president at Toys "R" Us, told MarketWatch in a recent interview. The title character is played by Miley Cyrus, daughter of country singer Billy Ray Cyrus, who also plays her father on the show.

Besides Hanna, dolls based on characters from Disney Studios' television-film "High School Musical" and DVD-movie "Disney Island Princess" could create competition for consumer dollars, industry observers said.

"It's unusual you have four such strong brands out in this category," toy consultant Chris Byrne said. "For years Barbie has dominated this aisle and it was very difficult for anyone to compete with it."

Barbie's parent company, Mattel, in El Segundo, Calif., is counting on sales from this year's princess tale, "Barbie as the Island Princess" on DVD; a companion doll sold separately; and Barbie Girls, an MP3 player that connects to a computer to open a virtual world where users can create characters, shop and chat with other children, MarketWatch said.