Your Xbox 360 or Xbox 720 will do this by making use of Kinect, as well as a new projector accessory. Although this technology is still in prototype form, which means we will likely see more, and new details, at E3 2013 in June, where the Xbox 720 is expected to make it’s official debut!
Exciting and very cool. You have to see it to understand exactly what this is. But it is a very interesting idea, and could be the first shot fired in bringing real “virtual reality” to practice in a non-stupid way.
“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.”