You can pick up a 3000 lumens 800x600 projector under 300 bucks these days. 3000 lumnes is plenty for a 100-120 inch area in low to moderate lighting conditions and 800x600 should be plenty for these "out of screen" effects. I doubt these effects would benefit from resolution higher than that.

It looks impressive and fun to play around with but, quite honestly, I didn't like most of the game enhancements. A lot of them would just be plain distracting rather than immersive, seems to me. Perhaps with more atmospheric games it could be enjoyable. I just can't see myself turning this on for a difficult title where I'm trying to concentrate. I did like the snow effect, though, and it could be fun for simple family type games. There are a lot of possibilities, I'm sure.

Why would you do that? You lose processing time, you simply project the image and if you happen to be in the way, you are the surface. Zero processing time wasted... (notice that in the demo, Kinect did absolutely nothing once the room was initially scanned).

However, there are several things conveniently missing from the demo. Like, for example, who is calculating the projection? If we assume the projector is 1080p (lower res = shitty picture), you need to calculate two images (one game screen, one geometry-aware, projected screen). That is a lot of power -where does it come from? who tells the projected screen how the world is supposed to look "outside the screen" (needs the source code of the game)?

Depends on the projector. Cheapest 3000 lumen I can find is Vivitek D860 svga (800x600) DLP
http://www.amazon.com/Vivitek-D860-3D-Ready-Portable-Projector/dp/B0063CZAUY $329

At 120" it should work in a dark room with the tv brightness turned down, at 100" it will work with normal tv brightness and ambient light.
You'll need a more expensive short throw projector though as this one already needs to be 12 ft away for 100" diagonal.

I guess it is possible to make a $300 mass produced short throw svga 3000 lumen projector. With a 100" diagonal it would still give a decent effect. (Although more IllumiBorder then room)

It won't be a mass hit though with a $300 price tag. It doesn't have the same marketability as Kinect, more comparable to a niche product like the Playstation 3D display.

#1 attribution of false alarm calls will be falling into Lava in Minecraft running on the next Microsoft console?

wow, looks pretty interesting

my interest has raised a little :)

Yeah I agree that it won't be a huge hit. This project has Microsoft Research attached to it who are not really experts at designing mass market consumption products, but tend to make cool stuff only a niche of the population will be able to experience and enjoy.

The fact Microsoft is allowing this to see the light of day outside some laboratory in Seattle is a pretty encouraging sign.

Otherwise few days ago here in Canada, Staples had a BenQ MX511 projector on clearance for $149. I picked up one strictly out of impulse...HD projector at that price, but was gonna return it since I really don't need it. Seeing this tech makes me want to hang on to it as it would be perfect for this application.

I scene the demo it is really cool but I will still never buy an xbox. To me my TV is all I need for video games. The extra wall stuff around the tv would be cool at first but I think would get annoying after awhile. I believe it will sell millions and opens the window for star trek like hauladeck to be become reality one day. For video games my 42 inch tv does it for me and or a new tv maybe 4k tv when they become price friendly. For video games ps3 and ps4 along with cloud gaming with older Playstation classics is all I need. Microsoft is hurting and they need to get this new xbox out fast with windows 8 sales lagging. I don't think they can produce and xbox release date before ps4 release. I say early 2014 or 1 year from now 4/29/14 is my guess. The high chip failure rate for the new xbox is hurting them they had to out source 3 different companies just to make the chips so they can produce consoles. This is why I say a 1 year release date from now for xbox 720.

They did show some tricks in the video where it can extend movement outside the screen based on controller input or from processing the screen buffer. That will only cost a small amount of processing power but makes a pretty boring effect.

For the rest it will indeed need to be supported by the game. A second image based on the same geometry or current effects needs to be rendered for the projector. There are plenty other hurdles. Even if they go with a standard projector it still needs to work with different sized tvs which will effect how much extra geometry is visible in the border.

Coffee table? B-But what if I like it in the bedroom?