Bad Dragon specializes in fantasy-based sex toys, predominantly on the theme of dragons (check out their site and toys here: link).
While these aren't to most people's tastes, the company has been around for a while so clearly there is a demand for these types of products. Additionally, Bad Dragon isn't the only company out there making unusual sex toys. A quick web search will show that the only limitation is imagination.
Some sample toys from Bad Dragon (and an article below):
THE GRYPHON
Many more, including David the Werewolf, Chance the Stallion, and Razor The Doberman, here.
When I originally posted this back in 2011, I received an email from Varka, the founder, designer and CEO. He sent along a write-up about Bad Dragon from Bizarre Mag. Click on the images to make them large enough to read: