It's called Sense-Roid. It's a hug simulator.
Hugging the mannequin creates corresponding pressure in the Sense-Roid vest. Here's how it works: on the mannequin there are force sensors that release corresponding pressure via air pressure valves in a vest worn in the video by brilliant, but possibly lonely scientists.
"When people frist try out Sense-Roid, they think it's creepy," said researcher Nobuhiro Takahashi. "But gradually, they start feeling safe and secure."
Sense-Roid isn't quite ready for production. Researchers hope to use the Sense-Roid for therapy or even for massage. A Sense-Roid user could massage the mannequin, and then the corresponding area in the vest would be "massaged".
Japanese netizens, however, are humorously saying this would be perfect for adult video games and dating sims. There's already an "hands free", ahem, pump. Hugging seems like a natural, if not overdue, evolution.