It was an interesting concept when they showed it off a few years ago, but I don't think it would enhance the experience by all that much. Similar to what Philips did with Ambilight for television viewing, it's not a big enough selling point, especially if it would require buying a separate projector. Anyone looking for true immersion is now looking at VR/AR, anyway.
I remember seeing that several years back, neat concept but like most of these niche things it never really sees the light (no pun intended) of day. Kinda like that surface table they came up with years ago. That was pretty cool but it never really made it to market. One issue too is when a tech like this is made it's usually proprietary and patented so it has a rather short life cycle since nobody else can make/implement the tech.
Ideally you are probably better off using a 4K projector covering a huge wall that takes up most of your field of vision, then play any game on that.
Yeah this is old. I think the OP got told about it as there was some similar thing showed off at CES (I think Razer has some like LED projector thing that does this), and I'm guessing it got mentioned a lot that Microsoft had shown off a prototype of this years back (the difference is, Razer is aiming to release an actual product, while this is just another Courier thing from Microsoft where it was just an R&D thing).
I would mostly agree that VR headsets would top this easily, but not everyone wants those right now and it'll be a while before they improve to the point that we'd not use traditional displays.
Its interesting, and I actually think it has potential, but it would need to be a lot cheaper and have more use before it would actually live up to its potential. I also think it actually would be good for AR (maybe even VR, wonder if it could be used to aid sensors or enable some type of feedback). If I'm not mistaken some company has been working on a full room VR/AR thing using projectors (where it projects onto the 4 walls). It didn't seem that appealing to me, but could potentially have its uses I suppose.
Oh, also, you could view this a precursor or at least a step on the road to a holodeck, or maybe at least holographic projection.
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