U-Tsu-Shi-O-Mi virtual humanoid

(Via PinkTentacle.com): 
Researcher Michihiko Shoji, formerly of NTT DoCoMo, helped create U-Tsu-Shi-O-Mi as a tool for enhancing virtual reality simulations. He is now employed at the Yokohama National University Venture Business Laboratory, where he continues to work on improving the virtual humanoid. The system, which currently requires a lot of bulky and expensive equipment to run, will likely see its first real-world applications in arcade-style video games. However, Shoji also sees a potential market for personal virtual humanoids, and is looking at ways to reduce the size and cost to make it suitable for general household use.
Here is a video of U-Tsu-Shi-O-Mi.