The problem is that it's not going to add immersion. Since they can't control the "stuff" in your house around your TV, or the lighting levels, it's just going to be light tricks. You've actually got it backwards as this is nothing more than smoke and mirrors. Love it or hate it, kinetic gaming brought way more to the table (it just was't for everyone).
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Actually, it can "control" the stuff around your TV, atleast as far as your visual perspective is concerned. It uses both Kinect and the projector to work, so it's not just lighting tricks - obviously it's not going to work in a bright-lit room or against clear windows. The video I posted just shows part of the effects, the videos on this talk about the specifics of how it works and what it's capable of:
http://www.viddler.com/v/abdabf16
It's not ideal for everyone, but this is far more interesting than waggle or kinect for motion controls and has potential for more than spazzing out in front of a TV to control something in a game.






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