Microsoft may have decided to bow out of CES, but that doesn't mean the company doesn't have some eye-catching new ideas to show off — like IllumiRoom, a crazy Kinect-based tech from Microsoft Research that turns a living room into a virtual gaming experience.

This proof of concept — rendered in real time and filmed live — pushes the graphical limits of what game engines can do. A Kinect for Windows camera scans the geography and layout of the physical environment, so the system can match the action on the screen and project it out into the real world. The end result is an explosion of graphics that leaps off the limited frame of the TV and extends into the room.

According to Microsoft Research, the system can even "change the appearance of the room, induce apparent motion, extend the field of view and enable entirely new game experiences." That's like a first step towards a holodeck, no? The only thing more immersive would be getting dinged by the actual shrapnel in a first-person shooter.

For more on this, stay tune, as the company will be revealing more about the project in Paris at the CHI conference on human-computer interaction this April.