Earlier this year the Microsoft Research team showed off a cool accessory for the XBOX which turned your living room into a huge screen using a powerful projector. Although it looked cool it wasn't very a practical idea because consumers would need their TV on a wall (not in the corner of their room), a coffee table (situated the right distance away from the TV) and the projector would struggle to show colours correctly if there was light in the room.
Head of product planning for the XBOX One, Albert Penello said earlier today "I wouldn't expect you’ll see that," as he explained why the IllumiRoom would cost too much to market. This is understandable since the technology looked pretty advance and projectors are expensive anyway without making them powerful and programming them to scan rooms. The IllumiRoom also used a Kinnect which also boosts the price up.
We can probably expect to see something similar to the IllumiRoom come out in the future when components are cheaper when the manufacture has smoothed out the issues that Microsoft had with the IllumiRoom.