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Project Fortaleza.

The 3D augmented/virtual realty glasses that Microsoft is supposedly working on. That's the hook for the next Xbox.

What Project Fortaleza will offer is the ability for the UI and games to offer an expanded interface, as well as an expanded play environment.

Using the glasses, information can be tucked to the periphery of the users vision, then using a slight movement left or right, and up or down can "tab" the view in that direction, much as one uses the arrow keys. Or information could be displayed in a semi-transparent display, allowing the user to focus either on the information presented in the glasses or on the screen ahead. Having a conversation with your family, want to talk to your mum privately about a gift you got for your sister? Bring your mum's conversation to the main screen with your sister in your periphery on the glasses. Want to bring her back into the foreground conversation, twitch your head in her direction.

In terms of game play, environments that once relied upon using the game pad to navigate the environment could allow users to look in a specific direction and see around the environment. So as you turn your head to the right, the glasses display the environment to your right. The glasses go from transparent to actively displaying within the lenses what you should expect to see on your right. Crouching behind a crate? Need to see around a corner? Just lean forward and turn your head. Want to see what driver is on your left, take a look to your left and check him out. Need to see the bogey on your tail? Look back or look up into your mirror. Need to check your Pipboy? Look down to see the Pipboy.

I'm not saying it'll revolutionize gaming, but it will become the next Xbox's hook.