Yep, converts to stroller, and it's built like a battleship. Mine cost $700 and change, and that was in the early 1990's. If you gotta have one, try ebay, not the mall.
Crazy as the price is (I think it's in the $750.00 range bringing it to about $800.00 after tax) my daughter does love it! Graymatter is right, when the time comes, try e-bay or such!!