In Sock Puppet Theatre, the puppets change the digital environment based on their physical interaction, opening up the possibilities for play and co-operation.

Senior Coconut and Anita Mann hug, hold hands, kiss and fight. Wires from the keyboard are sewn with conductive fabric to locations on the puppet bodies. When the two puppets touch in certain poses, wires make contact and send key commands to the screen, which drive the generation of screen graphics.
By Haiyan Zhang.

Via Prototype.
Related: MIDI controller sock puppet.