That, indeed, is an Intriguing video.
I have no idea what they are cooking there in their kitchen, but my speculation goes into three different directions:
- a kind of Parsec 3, which allows Re-Synthesis, like "feed your own samples into it, re-synthesize, morph and mangle them (in a kind of 3D-interface manner) to your liking".
a polyphonic Modular synthesizer,
a physical Modeling synthesizer specialized in mimicking Wind instruments or even something beyond that.