Hello, Sammijay! Yes. The Ugobe pleo has been discontinued so there is no more software being professionally developed for it. There are several company-developed personalities to download here on the forums as well as a few personalities and games developed by individual forum members using third party applications.
As far as communication, Ugobes cannot communicate with pleo RB's. They can however communicate with other Ugobes as long as both units are running the same operating system. If you do decide to purchase a Ugobe, they are generally sweet-tempered and require less attention than an RB. If you're looking for something more pet-like that requires feeding and that can deliver a wider display of emotions influanced by a time clock, go with an RB. If you have any further questions, please ask! We're all here to help!
Talon