It seems Microsoft has been filing patents for an all new depth sensor and a 360 degree display system that is capable of projecting a 3D game around your living room, in an almost holodeck fashion, akin to that from Star Trek.
The new display technology patent says the device would be capable of displaying a full 3D environment across the walls of the play area, for example a living room, or bedroom, being titled "environmental display" and will project a full 360 degree using advanced projection technology.
Its said to feature an advanced 3D depth camera which uses infrared light patterns similar to that of the Kinect to detect object and room depth, as well as using the Kinect's 3D camera to calculate the position and movements of the player within the gaming environment. It's also stated that the device will work with Microsoft's 3D glasses or "Kinect Glasses" technology.
Its an interesting concept, although in my opinion one that sounds a little too complex for commercial use, its more likely that Microsoft is aiming to patent the potential applications of new technologies like future iterations of the Kinect (eg: Kinect 2) and their Kinect Glasses, or just generally patent trolling something that they made a prototype of in R&D to prevent other companies stealing their ideas, but it will certainly be interesting if this technology takes form in the real world over the next couple of years, be that for public or commercial applications