Microsoft's RoomAlive is currently too large and expensive for many users. Courtesy/Microsoft/The Verge

When Microsoft debuted its RoomAlive concept during the Consumer Electronics Show in Las Vegas in 2013, the augmented reality project seemed like a far-fetched idea. Now we're getting a first look at the product with a video clip that shows Xbox games being played on the walls of a room.

Microsoft's RoomAlive will transform living rooms into one giant Xbox game. Courtesy/The Verge/Microsoft

In April 2013 Microsoft said the project was 'just research,' but now, it seems the Redmond, Washington-based conglomerate is working on more than just a ‘research’ concept.

RoomAlive uses the Kinect camera, a field-of-view projector and a computer to create a “procam,” using six of these devices to power the augmented reality experience.

RoomAlive is based on the fundamental aspects of IllumiRoom, which utilizes the Kinect and projectors to render an augmented reality experience inside a room. Players can touch or hit objects inside a game, or interact with the game through any of the room’s surfaces. The technology also monitors the position of the player’s head across the Kinect’s six sensors.

This type of technology is currently pretty expensive and too large for the homes of many users, but the company hopes to re-create the augmented reality experience on a smaller and more affordable scale in the future. This could be an awesome opportunity for those who are hoping to play indie sandbox game "Minecraft" on their living room walls. Microsoft recently acquired the billion-dollar game from Swedish developer Mojang.