This is Tengu, a new virtual pet coming out this September that is powered via USB and does weird things like light up, make faces, and "dance" to the music. Designed by a British gadget designer who goes by Mr. Jones, this white Mahjongg tile-like creature lights up when you plug it into your USB drive, "wakes up" when you blow on his butt, and then makes faces rhythmically according to the beat of whatever music's playing in your room. Apparently he has dozens of different expressions.
Link (Thanks, Matthieu!)
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