From a technical standpoint, the Dennou AR Figures virtual 3D girlfriends, first announced a few months back, aren't much more impressive than PlayStation 3's Eye of Judgment. You install webcam software to that when your camera detects the special bundled cube onscreen, it fills a 3D companion into your environment. But when that 3D companion is a girl who can be dressed, tickled or, errr, spanked, the concept is born anew.
From an original short-story fragment:
Homeless people, many of them marred by cruel deformities, lined the defunct sidewalk, summoning vicarious charms from slates and projectors. A tiny naked woman with copious piercings writhed in mid-air, extremities flickering.