Microsoft Illumiroom could be the next best innovation for gaming since Kinect, but if you were expecting to see it launch alongside the Xbox 720, you'll be sorely disappointed. However, there will be a public demonstration in July, which means availability shouldn't come too long after the Xbox 720 goes on sale later in the year.

The Illumiroom project started out at CES 2013, where it first wowed viewers and helped start many rumors claiming it might come out along with the Xbox 720 later in the year. Basically, Illumiroom uses Kinect to scan your living room, and then projects a series of illusions via a wide-screen projector.

In an interview with Engadget, Microsoft Researchers Hrvoje Benko and Brett Jones say one would not be required to purchase an expensive wide-screen projector to get the benefits of Illumiroom. They also say the team experienced a number of technical difficulties, such as the inability to project content onto glass, and projecting certain colored content onto different colored objects in your house.

Note that Kinect and the projector can be mounted in any convenient place in your house; however, since Illumiroom works alongside Kinect, players will be required to have a relatively large area to make the most of this new technology.

Furthermore, Hrvoje Benko and Brett Jones mentioned they would like to see Illumiroom used with various types of content such as movies, music, video games and more. In addition, the researchers are working with a few film directors to explore what can be done with Illumiroom where movies are concerned.

It is safe to say gamers would use it more than anyone else, since it enhances the gaming experience. Movies could work just as well, but film directors would have to take great advantage of the effects to make Illumiroom an alterative to 3D. Make no mistake, we could see similar technologies used in movie theaters in the not-so-distant future.