guesses based on analysis and conjecture: imagine a tiny projector which is tracking your eyes (and surrounding light conditions), and can project a 3d light field, rather than a 2d image onto them. With this device you could create the perception that you're looking at something in the real world which just ain't there. Hence the flying whales and tiny elephants n' such. It's a AR/VR/Display technology.

They will basically replace customer's eyeballs with a couple of optical fibers wired directly into the visual regions of the brain. (just kidding)