Functioning as both a performance tool and a visual display, the Tenori-On is a MIDI controller with a 16x16 LED button matrix (thus the Lite-Brite comparison) that lets you play samples to build up loops using six distinct music creation modes. You have to read the full list of features to find out exactly how it works, but the following video explains the general gist:
The Tenori-On, designed by the interactive artist Toshio Iwai and Yamaha, is currently only available in the UK, but Yamaha says it is considering releasing it in other countries at a later date. (Bonus: here's a video of Jim O'Rourke talking about the Tenori-On... in Japanese).