That's amazing!
But I can't really see how it can be used. How exactly would it be used for gaming?
In the video you can see that the virtual world is populated with not only markings on existing room surfaces, but with virtual objects as well. The projectors show those objects when the projector is aimed at the location where the object or markings are, and then the person can interact in a realistic 3D manner with those objects (like kicking the virtual cubes around, picking them up and putting them on the desk, pouring a stream of small balls onto surfaces where they then roll and cascade around as if gravity were acting on them, etc).
Well, imagine the images not only being displayed with projectors, but also with 3D goggles on your face. Now you see the virtual objects and overlays wherever you look, and you can interact with EVERYTHING in the virtual world by every movement you make. Not only that, each player may be able to see special objects or markings that the other players can't, based on their personal special skills. For example, a thief might be able to see markings that point out a secret doorway that the other players can't see or open.
One player could see a nasty critter about to attack another player from behind, or see that another player is about to step on a trap, even if the player about to interact with the virtual object is not looking at it or doesn't see it.
Virtual weapons can also be used. The player would carry a simple sword or weapon hilt with a short foam pointer, and the computer would draw a virtual weapon around the hilt. Or inert guns could be made to shoot virtual bullets that interact with virtual or real objects. A real bow could shoot virtual arrows.
The game master watches things in real time, and whatever events are not handled by the automated routines, the game master handles. For example, if you swipe a sword through a monster, the automatic routine ought to inflict damage on the monster. But if a magician casts a verbal spell, the game master would be needed to judge if the spell was appropriate and effective, and then apply the right changes to the environment to reflect the results of the spell. Some puzzles or other interactions could be automated, but anytime the gamer does something unexpected, the game master would have to modify the game in real-time to implement the expected results of the gamer's actions.
And that's the neat part about dream park technology - the game designers mix real and virtual objects to create an interactive world. A real object the players must interact with (a treasure chest, for example) might be a real chest that they have to lug around, but the monster guarding it could be virtual. Some monsters could be real though, so you gotta be careful not to use real weapons
Swing your fake weapon through the real or virtual monster, see the virtual blood or actual gory fake blood spurt! Point your finger and shout a cool sounding spell, and the game master can make lightning shoot out of your finger and explode whatever you're pointing at.
A game designer can create any genre of game. You could do anything from Dungeons and Dragons, to MYST, to space based FPS shooters, to flightsims, to... well, anything really. The designer just mixes real and virtual objects in the gaming area, and does his best to smooth the transitions between the scenes or events as the game progresses. For example, a room that the gamers pass through might be a combat area the first time, but the next time they go through the room, game trolls may have replaced the combat scenery with cockpits and the virtual overlay makes the room look like a hangar. All you have to do is change the props in the room, and the virtual environment adds the rest of the scenery and storyline.
Yea it would be rough at first, but I guarantee you that people are already role-playing this stuff without any of the computerized help. So anything that can help move the game along and add to the immersive nature is a step forward. Eventually it'll smooth out, in the same way that the original wireframe microsoft flight simulator has evolved to games like AH. This is the next step in augmented reality and it's going to be awesome for gaming and entertainment parks.
Imagine when you enter disneyland, you're given a special set of glasses. When you wear them, you see thousands of virtual objects, characters, and scenarios playing all around you. Give mickey mouse a kick, and a huge animated cartoon boot comes along and steps on you, and your glasses go blank for 10 minutes. Shake mickey's hand however, and mickey gives your kid a virtual coupon for half-price mickey mouse pancakes. Look up, and see aladdin zooming around the sky, or dogfights from every era recreated in 3D right above you.
Read dream park and you'll get it. Larry Niven. Awesome book.