Bandai’s Tuttaki Bako
Yes, what you are seeing here is true. Someone is putting their finger in a tiny box, and they are interacting with virtual images.
Welcome to the wonderful and possibly eerie world of Bandai's Tuttaki Bako, otherwise known as the Tuttuki Box. It has the power to transform your fingertip into a pixilated form to interact with virtual creatures like a panda, a slime ball, and even the face of a female.
I have no idea what the real fingertip feels, but if you want to try it out, the Tuttaki Bako will be available in Japan for a price of $30.