Microsoft just demonstrated an interesting display technology called Illumiroom at the Samsung CES keynote that apparently fills up the room with images and lights beyond the confines of a television screen. We were shown a video of someone playing Xbox games and making it seem like it's snowing in the room, for example. It's unclear how the technology is being implemented, but we were promised it wasn't just video tricks and was indeed a video of a lab demo. We'll try to suss out the details for more.
Update: It's actually a Microsoft Research project that uses a Kinect for a Windows camera combined with a projector. It apparently "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." Sure it's still in the prototype stage, but color us intrigued. We'll be sure to follow up with the Redmond giant to see if we can get a bit more up close and personal with this. Stay tuned.