The story I remember on these (from quite some time ago) was that they were based on memory chips that had faults; The faults (in 8 bit or whatever audio) don't make a big difference (they could filter the POP's out I'd think) so they're CHEAP and this is a pretty good solution. They make these into those "singing Christmas Cards", or Birthday cards etc. - Those at a Dollar Store are a cheap source of the ICs if they ever get rare. (Which I doubt will happen.)
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