Yes, that's a giant samurai sword slicing Osaka Castle in half. No, the sword is not real. The castle, however, is.
According to Sankei (via 2ch), Osaka Castle is being illuminated with projection mapping until next February. In the news clips below, you can see it in action.
Osaka Castle fell and burned during the mid-19th century. And as World War II raged, the castle and its grounds housed a military arsenal and military barracks that were bombed during the war.
大阪城が割れた？ 燃えた！ 立体映像を投影、１４日開幕 [2ch]
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