Christmas Pals are millions of inanimate versions of the Demonic Toys (Jack Attack, Grizzly Teddy, Baby Oopsie Daisy) that were manufactured by Erica Sharpe's Sharpe Toys Industries during Christmas 2004. Erica had made a contract with Bael, the demon of wealth and prophet that if she bought to him a member of the Toulon family blood-line for him to sacrifice, he would wake all her Christmas Pal toys up on Christmas morning, that will kill all the humans of the world and allow Erica to rule the world. Bael needs somebody from the Toulon family as he has an ancient feud with the family name after Jean Paul Toulon (father of Andre Toulon), lied to him many centuries ago. Erica not only sells her Christmas Pals, and has a advertisement on television, but she also gives them away for charity.
Puppet Master vs. Demonic Toys
Robert Toulon at the Sharpe Toys warehouse, surrounded by thousands of boxes of Christmas Pals
Robert Toulon holding one of the many inanimate Christmas Pals that were planned to be bought to life on Christmas morning