Microsoft recently unveiled a marvelous prototype projector and scanner that can turn an entire room into a screen.

Dubbed the IllumiRoom, the technology uses an Xbox Kinect and projector to blur the distinction between your TV and the rest of the room. Microsoft is for the moment staying mum on how it all works, but did say, "It augments the area surrounding a television screen with projected visualizations to enhance the traditional living room entertainment experience."

"Our system can change the appearance of the room, induce apparent motion, extend the field of view, and enable entirely new game experiences. Our system 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."

The Kinect will have the ability to recognize furniture in your room, either incorporating tables and chairs directly into the game, or adapting the video output to render the items invisible.

Full details on the IllumiRoom will be revealed at a computer graphics conference later this year. Check out the pics and the video and tell us what you think.