Microsoft Research has been busy, and with good reason. The division posted a promotional video of what could become a killer feature of the next-generation Xbox "Durango" game console. Called "IllumiRoom," the tech projects an extended field of view (FOV) on parts of your room around the TV, which makes for some groovy visual effects. Games and applications are no longer confined to your TV, however big it is.
It looks like IllumiRoom consists of a projector that scans your room for size and objects, for parts of the extended, projected FOV to perfectly frame the TV. The promo video posted by Microsoft does a fairly good job at exploring the possibilities of this tech. We'll leave you to it.