When they first started out at 3 I just bought the little video clips that you can get off line like Dora the explorer etc. Then there were also art type stuff where they can draw etc. I find the "game cartridges" that you buy at the shops not really good until they are about 4 - 5 depending. I just use it to grow with my child. My 5 year old now has the Monsters University game and the Toy story game which she absolutely loves. My 3 year old isn't really interested in those types of games yet. He mainly uses it for watching clips or drawing.
It really depends what you want your child to get out of it. There's lots of stuff that we mostly buy online and just download to it rather than the cartridges. The problem with the cartridges as well is that they are small and easily pulled out so if you're not watching and your child pulls out and loses it that's 40 dollars down the drain.
I haven't got an the reader thing yet.. you mean the pen thing right?? I've actually just bought that for my 5 year old daughter. I think those things would depend on your child. For my children at 3 it would've been a waste of money as I would've had to sit down and do it for her which means I may as well just read the words out to her. She's getting one at the end of the year and I think she'll like it as she's 5 now and will be able to operate the pen without my help.
I don't know if I've been much help but good luck with your decision !! I don't regret buying leap pads for my children at all. As I said my soon to be 2 year old is even getting one for Christmas (Mainly because she likes turning her siblings ones on and I don't know what else to get her as I'm sick of toys etc.. she's my third so I've already got everything lol).
You can connect to the home wifi but I'm not sure what this does as I've not actually used it except for downloading games/video clips. It can run out of memory as all computers can but I've got heaps of things on my kids ones and not run out yet. Depends what they do with it. You can take photos with it too which my DD loves doing.
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