Huggy Wuggy was first created by Playtime CO. in 1984 as a toy for children. He soon became the most successful product of the company, which caused Playtime to create Experiment 1170: a living, gigantic monstrous version of Huggy as part of the Bigger Bodies Initiative, out of an orphaned child.
Huggy Wuggy is a creature invented for a 12+ horror game called Poppy's Playtime. The scary and violent content featuring Huggy Wuggy is not actually aimed at children  the character was originally designed to scare adults.