It's an augmented reality game for Kinect that's due March 2011.
So, it's like real-life but better.
The pets you're given at the start of Fantastic Pets are rubbish: cat, dog, horse, lizard. Chuck them out, send them back - rubbish!
But they can become great. Through training and competitions and plenty of TLC, your beasts can change, eventually morphing into stunning dragons or unicorns - hence Fantastic Pets.
Blitz Games is making it and employing voice recognition as well as gesture input.