Project Natal? Sony's Motion Controller/Arc/Whatever It's Called? Psshht, whatever. They've got nothin' on the ARToolKit augmented reality Virtual-On demonstration we just watched. Spotted by Mecha Damashii, the tech demo gets our hearts all aflutter with the prospect of fighting a tiny mech while running from room-to-room in our apartment, dodging lasers. We hear those things are bad news! (Lasers, that is.) Regardless, if the video after the break doesn't get your heart racing, you should probably call a doctor -- you might be dead.
Now this is the kind of virtual reality i'm looking forward to. The kind that actually interacts with the environment. One of the fun things I'd like to see done with this technology is Laser Tag you can play at home -OR- anywhere.