This is a doll. It's also the subject of a patent filing by Sony Computer Entertainment Europe, which thinks it might be a good idea if the doll and your PS3 chat with each other.
The patent was first filed in 2008, though has only recently been publicly released. It details a plush toy that's packing gear like a wireless receiver, means of reading storage medium and even a processor, along with both USB and ethernet ports.
Descriptions reveal the toy would act as a sort of "buddy" for kids, who could pop a disc into their PS3 and have the console communicate with it, telling it to "act surprised" or "throw up its arms" at certain points during gameplay or viewing.
Other more pie-in-the-sky features, listed as possibilities, include a receptacle for liquid so it can cry and the ability to use facial and voice recognition to identify who it's talking to.
Before you go putting one on your Christmas list (or reminding us all about Microsoft's ActiMate), remember, this is just a patent application. The corporate equivalent of thinking out loud.