Sony held a short gameplay presentation on their Ustream and NicoNico services, talking about the physics and environment of the Japanese girl's room.

Even though they seem to have put a lot of effort into clothing physics, some clipping does seem to occur. The original demo of the game was running on Unreal engine... I wonder if that is still the case? I just doesn't seem quite as elegant as it did in the early demos. The demo also says "Project Morpheus" at the end, so maybe it's an early build, but that would seem weird this close to release.

Anyway, the actual gameplay should be timecoded in the embed below.

*creeper face*

So being that the genre is more focused on love and romance, rather than straight up sex or nudity, are there any similar games marketed to Japanese females?

@spaceinsomniac: Yes. There's the whole Otome genre. So far there's not anything announced for VR out of Japan, but China has a mobile VR app where you can have a virtual boyfriend.