Our cats love to chase the red bug of a laser pointer. The first pointers we had used watch batteries, which would only last for one or two play sessions. Later, we found a combination laser pointer and LED flashlight at American Science and Surplus for about $7.00. This one uses AAA batteries and will last a long time. It's also handy for finding mousie toys and balls behind or under heavy furniture.
Today at Home Depot, while Cat Daddy was checking out, I spotted a similar laser pointer-flashlight with the impulse buys. It's just $2.88 and comes in several colors. I didn't check what kind of batteries it takes, but surely not the old watch batteries. It's the best deal I've ever seen for a laser pointer cat toy.