Final answer:
The '90s handheld digital pet craze was created by the Tamagotchi, which utilized microchip technology similar to that of handheld calculators and video arcades, showing the widespread influence of microchips in consumer products.
Step-by-step explanation:
The handheld digital pet that created a craze amongst children in the '90s was known as Tamagotchi. These were small egg-shaped electronic devices that allowed children to raise and care for a virtual pet. It was a significant part of the digital revolution in consumer products, indicating how microchip technology has been applied in various products over time. From handheld calculators to video arcades, this technology paved the way for numerous innovations that became embedded in the daily lives of people, especially the youth.