This hypothetical technology is a key element in some of the early short stories of William Gibson, including his 1977 debut Fragments of a Hologram Rose, where it is called ASP (Apparent Sensory Perception).
In his Sprawl trilogy, it is termed Simstim (Simulation Stimulation), and described as the most popular form of entertainment, perhaps equivalent to 20th century pop music.
A number of films from the 1980s onwards, such as Brainstorm (1983), Until the End of the World (1991), Strange Days (1995), Final Fantasy: The Spirits Within (2001), and Sleep Dealer (2008), depict the technology and its ramifications.
[1] In addition, Prof. Moran Cerf of Caletch published a paper in Nature where he described work that allowed for the real-time interpretation of thoughts.
Prof. Moran Cerf discussed the specifics of the work and the theoretical possibilities in various public talks.