Yesterday during CES 2013, Microsoft announced IllumiRoom, a new product that is capable of turning the entire room around your TV and Xbox into a sort of extension of the screen.

Microsoft Research explains it as such:

“IllumiRoom is a proof-of-concept system from Microsoft Research. It augments the area surrounding a television screen with projected visualizations to enhance the traditional living room entertainment experience.”

“IllumiRoom uses a Kinect for Windows camera and a projector to blur the lines between on-screen content and the environment we live in allowing us to combine our virtual and physical worlds. For example, our system can change the appearance of the room, induce apparent motion, extend the field of view, and enable entirely new game experiences.”

“Our system uses the appearance and the geometry of the room (captured by Kinect) to adapt the projected visuals in real-time without any need to custom pre-process the graphics.”

Microsoft looks to take realistic gaming to the next level with IllumiRoom. As of yet, it’s unknown if IllumiRoom will be an extension of the rumored next generation Xbox.

What do you think? Does IllumiRoom have the potential to change the way the world plays video games? Check out the IllumiRoom video below, and sound off in the comments section.