Microsoft has released a new video showcasing IllumiRoom, a new Microsoft Research project that could take Xbox gaming to a whole new level.

“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,” Microsoft writes. “The effects in the video are rendered in real time and are captured live—not special effects added in post processing.”

The idea is this: via the combination of the Kinect sensor and a video projector, the experience of playing games could be expanded and augmented in some pretty crazy ways. Sure, some of what’s shown in this video could be completely obnoxious when trying to play a game—but it could also be mind-blowingly cool.

And—again, according to Microsoft—none of what you see in this video was the result of post-filming special effects. These are all things that the Xbox 360 + projector are doing in real-time.