Microsoft has shown a concept Xbox system called IllumiRoom at CES 2013 in Las Vegas.
IllumiRoom uses a Kinect for a Windows camera combined with a projector. It apparently “uses the appearance and the geometry of the room (captured by Kinect) to adapt the projected visuals in real-time without any need to custom pre-process the graphics.”
IllumiRoom is a proof-of-concept Microsoft Research project designed to push the boundary of living room immersive entertainment by blending our virtual and physical worlds with projected visualizations. The effects in the video are rendered in real time and are captured live — not special effects added in post processing.
The video showcases flames erupting out of the side of the television, city streets and other backgrounds scrolling by on the room’s back wall, and assorted particles flying all over the entertainment center’s drawers and shelves.