Total Immersions has an "augmented reality" tool called D'Fusion Technology, as demonstrated in the Windows Media (ugh) video-stream (ugh) linked from the page below. It's pretty stunning: real people and objects are captured with video cameras and then three-dimensional virtual objects are seamlessly matted in, so that the demonstrator appears to be holding a bouquet of flowers that turns into a lightsaber, then a helicopter flies over the audience, etc. The gaming applications are pretty rad — think of EyeToy with about a thousand times more granularity and interaction.
(via Waxy)
