This little octopus is, in fact, a 1.3-megapixel Webcam known as Lili. Manufactured in Vietnam under fair-trade conditions, Lili is composed mainly of renewable and recyclable materials. The Webcam's body is made of sand, cotton, and kapok (a natural tree fiber), and is shipped in recyclable PET packaging. Lili is made by a U.K. company called United Pepper and costs about $60. The company makes an equally odd-looking USB hub called Oscar (priced at about $38), which comes with a quartet of USB 2.0 ports.
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