Japanese researcher Michihiko Shoji has developed a nifty “virtual friend” system that consists of “a head mounted display and creepy green sensor-laden robot.” Video demonstration after the break.

As you interact with the bot, not only will it react accordingly, but you’ll be able to see the virtual buddy via the HMD instead of just the weird green person in front of you. Oddly enough, Shoji believes that one of the best applications for this technology could be with arcade games

[via Gizmodo]