Microsoft’s IllumiRoom is what the company calls a “proof-of-concept system” brought to you by Microsoft Research aimed at enhancing your gaming experience like never before.
The camera projects an image onto the wall that “augments the area surrounding a television screen with projected visualizations to enhance the traditional living room entertainment experience” according to Microsoft. This is done by using a Kinect for Windows camera along with a projector to “blur the lines between on-screen content and the environment we live in” according to Microsoft. allowing us to combine our virtual and physical worlds. Using the device, Microsoft hopes to “change the appearance of the room, induce apparent motion, extend the field of view, and enable entirely new game experiences”.

While using the “appearance and the geometry of the room” by utilizing the Kinect camera, the projector then can add visuals “in real-time without any need to custom pre-process the graphics” behing the TV and have them work seamlessly with the screen. “What you see in the videos below has been captured live and is not the result of any special effects added in post production” says Microsoft about the video above.
Microsoft states, “We investigate how projected visualizations in the periphery can negate, include, or augment the existing physical environĀ­ment and complement the content displayed on the television screen”. The design team continued, “We present a detailed exploration of the design space of peripheral projected illusions and we demonstrate ways to trigger and drive such illusions from gaming content. We also contribute specific feedback from two groups of target users (10 gamers and 15 game designers); providing insights for enhancing game experiences through peripheral projected illusions”.
more info: microsoft/research