Microsoft's new IllumiRoom technology will reportedly be used in the Xbox 720.
The tech company unveiled their latest advancement at the Consumer Electronics Show that took place in Las Vegas this week.
The IllumiRoom concept creates an immersive gaming experience that can change the appearance of a room. The technology uses the Kinect Sensor and a digital projector that scans the room to create a new way for gamers to play.
A statement on the Microsoft Research website introduces the new technology: "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."
A video was posted on YouTube by Microsoft's research team that shows how the new product will work to expand the gaming experience beyond the reach of a standard television screen.
The video shows how the IllumiRoom works while playing a kart-racing game set on a snow-covered mountain, with snowflakes falling around the TV screen as well as getting into the action of a fast paced first-person shooter.
IllumiRoom appears to be the realization of the immersive display experience Microsoft patented last year, which aimed to make gaming "more realistic" and eliminating "out of context images" that sit next to your TV, according to IGN.
Microsoft is also busy developing the new Xbox 720 which reportedly will have an 8-core CPU, a customized AMD 8800 series GPU, and pack 8 GB of RAM. The current rumored released date for Xbox 720 is June 11, according to The Christian Post.
It is still too early to tell if the new tech will be released or if it will be a hit alongside with new iteration of Microsoft's popular Xbox gaming platform.