This is another of Tomy's attempts at a Movie Sonic doll.
It is FAR less scary than other Movie Sonic dolls, but that is also because it is not very movie-like at all--probably why it stayed in prototype phase. They've split the eye into two, but kept the usual/nice 'Sonic eye style' though they are a bit close together. They reduced the ear border, and lowered the arms but that only makes them look like they're growing out of the sides of the body, rather than suggesting that he has shoulders. The body is small/round belly-dot so that's normal (unlike movie) It looks like they couldn't decide what type of hands he should have so they're like...sorta-gloves with no cuffs. The shoes are a stand-out because they are so rudimentary. No detail, no sock, no even real shape...they're just ugly balls on the ends of the legs. The fabric looks sort of textured? Like it might even be wiggly/curly somehow.
It is interesting to see their effort here, even though they lost the license (rightly so) and what the prototype looked like.