This is a puppet.
But....it's also a bit of a mystery. Certainly, there were old, classic official Sonic puppets but a modern one? Where is it from? Is this really a USA item? If so, where was it sold and how much was it? Was it part of a set or something?
The 'problem' with it is, that it's too well made to be suspected of something fake. The face has decent proportions the eyes are placed right & made of quality stuff....it has tidy little hands & glove cuffs & even the head shape seems right. (The neck is thick because it is a puppet) But really...puppets are kind of old fashion so it's a little odd that something would make a new one like this. Write in for credit if you can clear something up about this odd item.