Here is an interesting question(at least I think so),is there a difference between a game and an interactive toy?

What I mean is I see some people drawing the line and say that if a game doesn't have levels or defined objectives it's not a game it's an interactive toy.

This is an interesting question to me because some of my favorite "games" from when I was a kid don't fit the mold of being a game. I mean is something like 3D movie maker really a game or is it a toy? What about the Sims games,are they games or toys that happen to be on a computer?

If there is a line between video games and video toys where is that line?

What do you think?