It's this bizarre but fascinating and dark 1985 German horror fantasy drama from Roland Emmerich before his days in Hollywood. It's kind of a creepy modern day fairy tale about a little boy named Joey who just turned 9 is coping with his dad's death and lives with his mother in the city of Virginia Beach, one night he gains amazing psychic and telekinetic powers that enables him to make his toys come to life, makes his dreams of living through movies like E.T. and Star Wars come true and of course speak to his father on a toy phone. However the students at school refuse to believe his secret as he has only two friends, one day he finds a creepy ventriloquist dummy in an old abanoned mansion that belong to a magician as later he discovers it's possessed by a demon with powers like Joey's only stronger. The little demon terrorizes the young boy as it also threatens his mother, friends, teacher, enemies and city with demons from another dimension as the boy must stop this madness.
The film is inspired by the films of Lucas & Spielberg including 1945's "Dead of Night" and "The Twilight Zone" TV show. I think it's better then Emmerich's later Hollywood movies except "The Patriot", it's an interesting yet dark fable about growing up and imagination. Sometimes we all love to relieve our favorite movies in our childhoods as this movie deals with that and theme of coping with death. I saw this movie when i was 5 in 1987 on HBO and it scared the crap out of me then it later became one of my favorite movies of all time.
The dummy himself is the scariest one to hit the screen since Fats from "Magic", i highly recommend viewing this movie on Youtube:
http://www.youtube.com/user/johnlindsey289
It has both the U.S. heavily cut New World Pictures english dubbed version and the uncut extended German language with subtitles version called "Joey".