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Distorter is this tech demo by a bunch of Japanese people. Watch the video and you might immediately think of Portal (the gun, the very basic environment). But instead of shooting holes, the gun distorts the game world. No obvious way to go up the next level? Fire the gun and it creates a slope for you to use. Shoot the floor and it creates a crevice for you to go through. It's quite brilliant.

Oh, and you can play the tech demo. Download it here.
Nice.
Really clever. Reminds me a lot of the game Tag: The Power of Paint. Actually, it's similar in a lot of ways; Tag was created by a bunch of students at DigiPen as a course project, and I can only assume that the students at the Kobe Institute of Computing came up with this under similar circumstances.

I really, really hope these guys get hired by Valve to work on Portal 3, the way the people behind Tag did.
Bump because it's almost criminal nobody seems to have seen this.