Episode 8 of "16bit Sensation - Another Layer" titled "Imagination and Reality" explores the concept of imagination and its impact on game development.

The episode begins in 1985 at Echosoft, a small software company in Akihabara, where Mamoru finds himself after being sent back in time. He starts working part-time at Echosoft, a company very similar to Alcohol Soft, where he previously worked. Echosoft is run by a man named Echo, his assistant, who is also named Echo, and their dog Echo.

Mamoru is responsible for programming the games and quickly adapts to the technology of the time by using techniques like "Cling Wrap Scanning" and the Music Macro Language (MML) for composing music. He introduces improvements in graphics and sound design, thereby enhancing the quality of Echosoft's games.

The narrative then delves into the concept of imagination. Echo, the head of Echosoft, reveals that he lacks imagination and develops games to understand this human trait. Mamoru finds it difficult to explain imagination to someone who has never experienced it.

The story takes a turn when Echo Two, the assistant, disappears for a week. Mamoru, worried about her, sets out to find her. When he locates her, he learns that Echo Two has gained an understanding of imagination but struggles to articulate it.

The episode culminates on the roof of the Echosoft building, where Echo discusses the power of imagination with Mamoru. Echo believes that imagination makes humans unique and allows them to create and experience worlds beyond reality. He thinks that through imagination, humans become multidimensional beings capable of altering time and space.

At the end of the episode, Mamoru returns to his own time.