The Robotic Arm is a toy from the 80s, by Tiger Electronics. It was shown in a 1987 Tiger Electronics Toy Fair catalog, and does not appear to have been released.
The robotic arm toy came with three interchangeable ends, including one you could use to launch two missiles, a water gun that was advertised as having a 15 ft. range, and a claw, which is used to pick up objects. The water gun accessory requires two AA batteries.
MODEL 7-981
The ROBOTIC ARM™️ comes complete with the main unit, Claw, and Water Gun accessories. The main unit easily straps to your forearm by a PVC adjustable band. Usable by both right and left hand players. Move the three control rings to control all the actions. Main unit with accessories attached is 19 inches long.