The would work with Kinect to gather information about a gamer's living room, and then project lights around their television set to extend the image displayed on the screen in real-time.

Microsoft looks likely to reveal more about the device at the event in Paris, France tomorrow.

A video released by Microsoft says that self-calibrating IllumiRoom can "change the appearance of the room" to "distort reality, extend field of view, and enable entirely new gaming experiences."

"IllumiRoom envisions a next-generation gaming console with a projector that sits on your coffee table and surrounds your television with projected light," .

By using what the video calls radial wobble, for instance, the IllumiRoom can appear to make the living room shake to gunshot fire. "By distorting and reprojecting the room texture," says the video "it is possible to warp reality and make it appear that the room itself is responding to the game."

Other effects shown include falling snowflakes that can bounce off furniture or speed up depending on the actions taking place in-game.

The device is even shown working with Gearbox's Borderlands and Valve's mind-bending puzzler Portal.

and a five minute video showing the device in action:

Microsoft will reveal its next-generation console on May 21.