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When I first saw Illumiroom I thought it was alright and a nice little side project for MS research. After looking at the full Illumiroom video, I see a lot of very cool gameplay concepts that appear to enhance the gaming experience. The racing simulation party were the light changes as your ride moves under bridges and things of that sort.

Being able to change the contrast of your gaming space is also a neat trick which I can see if developers supported that could be very cool experience. Think of Resident Evil or some type of horror game where the walls drip with blood or slime things of that sort.

The part of the demo that showed the snow effect could be expanded to do leaves in a Ninja Gaiden game or sand blowing around like in the Uncharted 3 scenes.

There was the other scene where if there is an object you need to pay attention to and turn from it, the projection could light it up thus giving clues within the game.

I believe that in the hands of some very creative developers we could really see this tech going from gimmick to I want no matter the cost if done right. Actually if MS wants to sell this tech, they should have their own first party or 2nd party studios build those types of Illumiroom features within their games and showcase them at their May event. It would be even better if People at the event can play those games to give their opinion how the tech feels because I am sure its something that you have to experience than watching from a video.

Last but not least the problem I see with the tech is if MS will bring this to market, will they bundle some type of device with the console or will people have to purchase their own projector. Will MS sell their own branded projector which is cheaper or better than what you can get at the price point they choose.