Microsoft has been hard at work coming up with some innovative ideas. One such idea is Xbox IllumiRoom, a system that utilizes Xbox Kinect and a projector to augment the living room.

With Xbox Kinect and a projector set up along your television, Xbox IllumiRoom brings gamers more into the experience by changing the appearance of the room to fit with the content that is being displayed on the television screen, inducing apparent motion, extending the field of view, and enabling entire new gaming experiences.

"IllumiRoom is a proof-of-concept Microsoft Research project designed to push the boundary of living room immersive entertainment by blending our virtual and physical worlds with projected visualizations. The effects in the video are rendered in real time and are captured live - not special effects added in post processing," noted Microsoft Research.

Microsoft showcased a demo video of the concept in action via its research channel on YouTube. What the company showed was truly revolutionary, the whole thing could present a 3D feel without the need for expensive 3D TVs and glasses. Still, it does require four pieces of equipment to work, an Xbox, Xbox Kinect, Projector, and a TV. It would have been better off if Microsoft could get it to work with Kinect alone without the need for a projector in the room, which would reduce cost and room clutter.

Furthermore, Sony has a similar technology in the works; however, it doesn't appear as practical as Xbox IllumiRoom. As it stands, it doesn't matter who showed the technology first, but who will be the first to bring it to market.

IllumiRoom is a truly capable technology. Just imagine having a go with your room flashing like this! Don't get too excited yet though, the end result may not be the same as Microsoft could be forced to cut back on certain things to keep costs down as far as the Xbox Kinect 2.0 is concerned.