Yes, it's true - the blue blur has been transformed into a VTuber model. The Sonic Twitter account in Japan shared a first look and introduction. Of course, the majority of it is in Japanese, but there is an English greeting. It's not known what Sega's plans are beyond this or if the VTuber version of Sonic will make it across to the west.
If you're not familiar with VTubers, they are 3D streamers voiced by real people and are all the rage on the internet right now. The voice of Sonic in the above video is handled by Jun’ichi Kanemaru - the talent who has been voicing the character in Japan since Sega's 1998 Dreamcast release, Sonic Adventure.
VTubers are more commonly anime-style characters, so it'll be interesting to see how this version of Sonic goes. Would you be watching Sonic as a VTuber? Leave a comment down below.