Last September, a patent was found by CVG that created the closest realistic idea to a Star Trek hologram with real-life technologies. While many speculated saying this device wouldn't be coming out very soon, Microsoft wanted to prove them wrong apparently by showing off a live demo. As this is the first year that Microsoft didn't have a keynote at the show, news for Microsoft products have been dissipated. According to information shared with CVG, the concept uses technology that has been revealed in the 'Xbox 720' document leak.
How IllumiRoom (phonetic: el-lah-room) will work by using your traditional TV set with a Kinect plugged into the next Xbox console and a projector that would probably connected to the ceiling. I would like to clarify that a Xbox 360 'slim' is sitting there on in the video but no controllers are detected so I'm taking a leap of faith to say they weren't using the 360 hardware for the demo. How the Kinect will exactly detect the area behind it is unknown to me as they don't really explain it in the video demo or the CVG article. According to a Microsoft represenative, all gameplay and additional visuals were not manipulated in post-production.
According to the patent that was revealed last fall, the Kinect detects where the player is in relation to the rest of the environment to create the traditional controller experience while also integrating the capability of the Kinect. Microsoft plans to reveal more information on this new concept at the CHI 2013 conference on April 27th. Until then, check out the demo below.
Source - CVG