Qualcomm has demoed a new augmented reality toy with Sesame Street that allows you to re-create Bert and Ernie's living room or bathroom despite the rooms not even existing.

The new technology, demoed by the company at CES in Las Vegas, follows on from previous augmented reality toys Qualcomm has demoed before such as Rock 'em Sock 'em Robots.

The augmented reality idea, according to both Qualcomm and Sesame Street, is to encourage interactive learning and push a child's imagination to what is possible.

Using Qualcomm's Vuforia augmented reality platform, and the camera from a tablet or smartphone running the app, the user (hopefully your kids) can bring scenes to life.

In our demo at CES on the stand we saw Bert and Ernie enjoying some tunes after a jukebox was placed in the room. We also had the ability to turn the disco lights on and play music. Other accessories included a toilet and car.

According to Qualcomm "The collaborative project explores the use of a tablet with a traditional playset to make children’s playtime more fun and educational."

The prototype playset includes traditional elements such as common household objects, as well as figurines of classic Sesame Street characters including Cookie Monster, Bert and Ernie.

"In the past, the only place toys came to life was on TV and in movies. Today, we are bringing that magic one step closer to reality," said Jay Wright, senior director of business development at Qualcomm. "With the ability to recognise 3D objects, Qualcomm’s Vuforia platform will transform the play experience. Our collaboration with the Sesame Workshop is helping us demonstrate the power of augmented reality to enrich children’s lives."

Sesame Street has a long history of using cutting-edge technology to address children’s developmental needs. Last year the company joined forces with Microsoft to demo a Kinect-powered game called Sesame Street Once Upon a Monster, that saw parents and kids alike jumping up and down in front of their TVs.

No word on whether Sesame Street will sell the figurines but with Christmas still 11 months away we hope that they will be available to put under the Christmas tree come December.