Bugsite is a massive online virtual reality, which anyone can access using a special 3D visor and a computer with an internet connection. Its creation was a joint effort between 4 major companies: FE, Sting, Ruger, and Tahiro, each of whom govern a section of the virtual world. These companies also make Bugs.
Bugsite itself is split into 4 sections for the companies that run them, and then further into a main area, a techno area filled with shops, and a safari area where you can catch wild (viral) bugs. Daichi starts out in Amiland, which is land-themed and run by FE.