Dubbed "Toirettsu" (トイレッツ), the game's title is a word play on "toy", "let's" and "toilets". As the Sega Toys website points out, "You're able to game with pee!"
The contraption is outfitted with mini-games, and there is a sensor that can apparently measure the speed of one's urine stream. Some of the mini-games include erasing graffiti with a hose (with your pee), causing wind to blow under a women's skirt (yes, with pee) and a "bukkake battle" in which on-screen players shoot milk from their nose (pee, pee, pee!).
This is a teched out version of those little targets found urinals. Not surprising that Toirettsu is intended for restaurants' and retailers' toilets in the hopes that pissing mini-games will result with more customer pee in the urinal and less on the floor. It is also possible for restaurants and retailers to include advertisements on the Toirettsu screen.
As innovative as these pee games are, this isn't a first. Back in 2006, designer Marcel Neund rfer created interactive urinal games that were part of an art installation. And Dan Maynes Aminzade did this in 2003.
Sega hasn't sprayed out a release date for Toirettsu just quite yet as it's still under development. You could say Sega is holding it.
SEGAが排尿でプレイするゲームを開発！ その名も「トイレッツ」 [Kotaku Japan]