"Quoting the Guide; "Sony and Microsoft will be the first ones against the wall when the Revolution comes.""
Awesome quote. I hope people get the reference.
As for the topic, without being able to "touch" your dog or "call" it, what's the point? Half of Nintendogs was the fact that you had tactile and verbal interaction with your virtual pet, upping the immersion factor.
Without those, you go all the way back to "Dogz" and "Catz" on the PC all those years ago.