Walter eventually breaks the news to his wife, Emily, played by Oscar ® winner Mary Steenburgen (Melvin and Howard). The Hobbs’ marriage is, according to Steenburgen, "basically a happy one," though it’s clear that Walter has been neglecting his family. "Emily’s frustrated that her husband works all the time and doesn’t spend enough time with their son," says Steenburgen, "but Emily rolls with the punches. She loves family, so although she’s shocked at first by the news of Buddy, she thinks it’s fantastic."
Emily insists Buddy be invited to come live with the Hobbs in their Upper East Side apartment, then sets about trying to fit this giant elf into their modern, busy New York lifestyle. "Emily immediately falls in love with Buddy because she has a child within herself that responds to him," explains Steenburgen. "Buddy brings a breath of life into the family. Even though her husband is very uncomfortable with Buddy and thinks he’s crazy, Buddy doesn’t feel harmful. Emily is immediately charmed by him. She also sees that he is good for her son."
Buddy’s ten-year-old half-brother Michael, however, is much less enthusiastic. Daniel Tay, who portrays Michael, describes the young boy as having all sorts of problems: his mom and dad are busy with work, he hasn’t been bonding with his dad much, and lately he has been having problems making new friends. Michael’s life, at least in his ten-year-old eyes, is "falling apart," comments Tay. "He just wants to be alone. He doesn’t want to talk to anybody. He wants to be his own person and do what he wants. So when this ‘elf guy’ comes into his life, Michael thinks things are only going to get worse. He’s very self-conscious, so he can imagine the consequences of school life, of kids making fun of him."
The relationship quickly changes for the better when Michael is bullied on his way home from school and Buddy comes to the rescue with some resourceful snowball action. "That’s when Michael realizes that this is a person who is going to stick up for him and not betray him," says Tay. "All of a sudden Buddy becomes a friend. He makes Michael realize for the first time ever that what he has is great, and that maybe together they can fix his problems with his father and mother and have a family."
"There is nothing jaded about Buddy," adds Steenburgen. "There is nothing cynical or hip about him. There’s nothing other than this childlike innocence and huge ability to have fun. He plays with the abandon of a child, and in many ways Michael doesn’t and he’s only ten. Buddy reminds us that we’re all capable of being magical – we’re all capable of having what is known as the Christmas spirit, which is really just having stars in your eyes and remembering what it is to be a child."
Slowly, Buddy begins to transform the lives of the Hobbs and those he comes in contact with. "Buddy’s a huge truth teller," says Steenburgen. "He holds up a mirror that causes all the characters to see the truth. It’s very easy in life to think that certain things are more important than they are—a promotion, lots of money, the best apartment or the best car, all those things. Even though these are not the most important things, it’s so easy to slip back into the wrong priorities."