To be precise, it's actually a projection that's projected on a specially designed transparent screen. Working hologram technology does actually already exist, but in its current state it does not allow the hologram to move around on the stage. 2Pac's appearance at Coachella last year was done with the exact same technology, except his voice was pieced together by hand from exiting recordings and not synthesized using a program like Vocaloid or something similar as is the case with Miku.
It's interesting to note that I've never listened to 2Pac's music, so this is in fact the first time I've watched this video even though I've known about it since I saw an interview where the person who worked on splicing together 2Pac's audio track talked about the process.
I'm currently listening to PPPPPP, which is the soundtrack to the indie game VVVVVV made by Terry Cavanagh. One of the best indie game soundtracks to one of the best indie games ever made. My personal opinion of course, but there are a lot of people who agree. I've had the OST in MP3 form since it was released on the composer's website, but I just noticed it's now also available on CD so I immediately ordered a copy.
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