Digamon was a little electronic toy made by Bandai.
A boys Tamaguchi the Bandai people came up with this dino reptile battle commercial to promote Digamon and asked Image Creators to build it.

These two animatronic puppets were designed and built to have a full  range of movements.  The body and legs were operated by puppeteers using hands and rods.  The head and face of the puppets were controlled by servos.
The Dinos had movable eyes, eyelids, mouths even the tails had a controlled wag. 
Two stunt puppets were built for running and the fight scenes.

Gonzo (the red one) and Bullhead (the yellow one) were made to battle against each other with Gonzo the eventual winner.

Puppeteers were:
Fred Spencer
Don Lewis
Pat Brymer
John Lovelady
and Mich'l Rios