Microsoft is announcing the next Xbox very soon. But forget about the next Xbox, check out this IllumiRoom technology that Microsoft recently announced.
Microsoft first debuted IllumiRoom at CES 2013, but it didn’t say much about the device until recently, when it released a 5 minute demo trailer. Instead of trying to describe how cool IllumiRoom is, check out this demo video:

How cool is that? You did watch the video, right?
Basically, IllumiRoom makes your living room respond to the feedback that is being displayed on screen. It can extend your field of view or create a virtual grid through which players move in-game.
IllumiRoom is generated using Kinect and a special projector. It’s going to be a part of the next Xbox console – whatever that console will be called. The projector is placed anywhere in the room with your TV – say, your coffee table.
But my favorite use of the technology is when you’re playing a racing map with snow on it, and IllumiRoom generates snowflakes around the room. Cool, right? But wait! Those snowflakes actually pile up around the furniture in your living room. IllumiRoom is smart enough to detect the stuff in your living room, and it’s these detection features that make IllumiRoom perform all of its cool tasks.
I like the top comment on the YouTube video:

Yeah, that would be pretty scary. Oh man. There is massive potential for IllumiRoom. Let’s hope Microsoft is committed to making this as cool as possible. Because if it’s just flashing lights swirling around your room while you’re trying to take someone down in Halo, it’s going to get really annoying really fast. And since it’s a projector, IllumiRoom may not be that cheap, either.
http://www.youtube.com/watch?feature=episodic&v=zWbXdObLxkM&NR=1