The tech uses vibrations of different strengths to simulate an object passing through you.

This video from DigInfo TV shows a demonstration of a device the Kajimoto research group are developing at the University of Electro-Communications in Tokyo, Japan. The device uses a phantom sensation (an illusion which occurs when two points on your skin are stimulated at the same time, making it feel as if the space between them is being touched) to simulate the sensation of something going through your hand. A device such as this could be used to improve realism in a fighting game or first person shooter, to simulate the feeling of being stabbed or shot.

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