Beamatron: Xbox, Kinect and Projector
Microsoft Research appears to be deep into work on augmented reality as is evidenced by many of the concept videos they've released recently. The Beamatron concept uses a Xbox 360 Kinect motion-capture camera. The device can sense and project graphics anywhere in the room and as it moves it creates a 3D model of the environment using Kinect technology. This video features a researcher driving a virtual car over real surfaces. Note the way the system reacts.