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You laugh, but someone has already combined the Oculus Rift with something like the Novint Falcon attached to a strap around the crotch to create a sex simulator (anime-themed, of course, so probably a Japanese company.) I'd search for the video of it in action, but I'm at work so it would probably be a Bad Idea. :)

Throw a Fleshlight in there somewhere with a stable (and modular, for various positions) housing and, boom, you're a step or two below a holographic sex bot as seen in something like The 7th Day. By 2020 I bet many porn shops will replace their video booths with virtual hooker booths, where the guy picks his "girl" of preference (oh, I can just smell the lawsuits over using the likeness of actresses, models, and video game/fictional characters), puts on the headset, and gets busy with a box.

...And I've not seen one mention of the Novint Falcon: http://novint.com/index.php?option=com_content&view=article&id=39&Itemid=54

I own one, and it is an awesome little device :)

High fidelity force feedback 3d controller - http://www.novint.com

What the heck is up with that 3-D mouse? Is Mozilla supposed to invent that?

It has already been invented:
http://home.novint.com/products/novint_falcon.php

I played with the Novint Falcon at the GDC two weeks ago. It's a neat concept, but the problem is that you have to constantly hold your hand in midair to use it. It's tiring, and not really useful for anything more than a quick demo. This controller, and controllers like the spaceball, make a lot more sense as far as being able to relax your arm while you use it.

My visualisation lecturer brought one of these into the lecture last week: http://home.novint.com/products/watch_demo.php

I had a go, it was pretty cool. He'd just installed Vista on his laptop and the software wouldn't run at full speed any more (surprise!) so he could only demonstrate touching a sphere of material, but it was good. There was a sphere of molasses, which really did feel gooey, and one of ice, which was slippery. There were others, but I didn't try them.

Haptics controllers are going to be appearing at compusa before christmas.

http://home.novint.com/

I tried it out the other day, was very cool.

Been available with a bunch of little games for tech demo purposes (and a full Half-Life 2 mod) for a while. Free (non-commercial) software SDK. Only a couple hundred bucks instead of a few thousand for previous devices.

Sensable (http://www.sensable.com/) already has a great set of controllers, but they are currently super expensive (thousands of $$).
Novint (http://www.novint.com/) is claiming they'll have a controller out next year in the sub $100 range which is comparable to existing industry haptics devices. If Nintendo licenses the hell out of this technology, it's possible for the price to drop even further.

Briefly, haptics is the study of the sensation of touch, google for more info.

Currently haptics devices from Sensable http://www.sensable.com/ have extraordinarily accurate force sensations. The problem with these haptics devices are that they cost in the thousands of dollars per device.

However Novint http://www.novint.com/ made a showing at E3 and are claiming they'll be coming out with a device under $100 in a year. Here's a link to an ign review off their website.

http://gear.ign.com/articles/709/709246p1.html

I think it would be neat (and probably in their best interest) if Nintendo kept supports and software hooks in mind for haptics devices in the future.