Furbaholic site - 2005 furby
In 2005, Hasbro announced plans to release a new and improved furby,
complete with voice recognition. 
It would have SIX TIMES the memory of the original toy!  
The new furby was said to have Emoto-Tronics, which would allow furby to show emotion due to being the ultimate combination of
"advanced robotic technology, puppetry, and realistic form-factors". 

The new furbys would feature:

voice recognition
flexible beak
expressive eyes
movable ears
touch sensor
tilt sensor

All this enables new furby to smile, frown, and look more realistic than the original.

Many of us die-hard furby enthusiasts pre-ordered the new furby, hoping all the hype was true.
I received the two new furbys I had pre-ordered in August of 2005.  After the fight to release them from their boxes was over, I began to assess my new furbys. 

Some observations on the positive side:

Much sturdier (and larger) body - nice because the ears are firmly attached and not flimsy as the originals were - and the fur is longer and of a very plush quality.

The eyes move a bit from side to side, and make furby look alive.  Furby will also blink sometimes when he's just sitting there, which also lends an air of realism.

Voice recognition worked fine in mine, though I've heard various reports on that, including that some respond to "furby" rather than the "hey furby" the instructions recommend.

Very nice purring sound when you pet furby.

Also, furby seems to stay awake longer than the originals did - a definite plus!

On the negative side:

There is no longer a light sensor, nor does furby get excited when you "fly" him through the air.  I miss the "wahoo!"

No reaction to loud sounds like the old furby.  Miss that, too.

And most noticably deficient is the interaction between two furbys, or should I say the lack thereof.  The instructions tell you they need to be within 3" of each other, which automatically is annoying and impractical - and that you push the tummies together till they blink and talk and that then they will interact.  Despite following these directions many times, I have yet to see anything I'd consider interaction.  It's more like they each go through a set repetition of phrases.  With the original furbys you never knew exactly what two would say.  This is a definite disappointment.  I guess it's possible my two are problem furbys, and not representative of what is possible, but from what I've heard that doesn't seem to be the case.

Despite the negatives, it's nice to have a new furby around.
Furby asks for "the baby" so it would seem that Hasbro must plan on introducing a baby in the future.  I hope they address the complaints of long-time furby fans in the babies, and work on the few negative aspects noted.
New furby was initially released in 4 colors only:

Black & White
Gray & Pink
Tan & Pink
White & Tan

I have the black & white and the gray & pink, and note that the eye colors are a dark blue and light blue, respectively.

Comparison pic showing (from left to right) new furby, original furby, and original baby furby.
Close up of the eyes.  Note how the eyes have a marbled effect with a bit of a contrasting color just outside the dark center. 
Close up to show the texturing on the eyelids themselves.
Different expressions of FURBY!
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Coypright  2005, Anita Golden
All Rights Reserved.
The other two furbys in the first colors released,
White and Tan & Tan and Pink
(thanks to Lynn and Amalin  for the pictures!)