We have featured a number of the Tokyflash concept watches here at Geeky Gadgets, with the majority of them being turned into actual watches.
The latest creation is a design submitted to Tokyflash from Peter in the UK, and the watch combines both LCD (or LED) with a mechanical analogue watch movement, as you can see in the photos below.
Tokyoflash Hybrid Watch
The time telling method is very simple, the arrow shaped hand has 12 LCD (or LED) blocks representing the hours. This hand is part of a disc which rotates powered by the mechanical movement to point towards the minutes. Around the outside of the disc is a ring of LCD (or LED)blocks  that represent the seconds, this gives the watch some animation.
This design is just a concept at the moment, but we suspect this one could end up going into production, you can find out more details over at Tokyflash.
Source Technabob