The emerging vision of an Internet of things (IoT) as a global infra- structure of networked physical objects is undoubtedly compelling across a range of potential application areas. While the vast majority of implementations thus far have presented IoT objects in a passive sensing role, or used them to provide some form of remote access/control, there are considerable opportunities for the creation of novel playful or gameful experiences. In particular, the creation of hybrid physical/digital IoT objects presents designers with a number of interesting opportunities as they can (i) blur the boundaries between physical objects and virtual worlds; and (ii) they provide opportunities for embodied physical play outside a virtual environment. However, in order to maximize these opportunities, designers need to develop new approaches to their interaction design that combine understandings from both product design and computer interface design. In this chapter, I consider the nature of IoT objects and how the digital and physical affordances of such objects can be combined using examples of a number of gameful and playful IoT systems.