Microsoft and Samsung demos "Xbox display"

Update: IllumiRoom project site, videos included:

Microsoft just demonstrated an interesting Xbox display accessory at the Samsung CES keynote that apparently fills up the room with images and lights beyond the confines of a television screen.

Seems related to this patent.

Very interesting idea. On paper seems that it would enhance one's sense of immersion, but I can also imagine it having the opposite effect in practice...
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.

Apparently this dude never saw the Milo presentation. I'll believe it when I see it with my own eyes.
If priced reasonably I could see this catching on in popularity or finding some niche market. It's impressive to say the least but not exactly ground-breaking either.
I think it all really boils down to two things:

1) What's the price? If it's ridiculously expensive, only the niche players would pick it up.
2) What's the quality of the panel? I know Sammy makes good stuff, but I could see them cheaping out a bit if they had to keep it "affordable"
Just looks like a projector behind the players syncronized with the TV image.
Can't see this as groundbreaking as the Oculus Rift or something similar.

Plus, would never work for party games (darker room required).
I had better get 360° projector support from any next-gen XBOX themes I buy. Love the idea of an extended HUD as well as a way to control the ambient light in a room to maximize atmosphere instead of just lighting up the room with secondary light coming from the display.