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Holograms? Who did they buy that gave them that kind of traction. Seems like the corner that Oculus had been gunning for.

I think MS research has been working on this for years. I watched a video a while back about them doing this sort of thing in their labs.

I think Steven Bathiche has been doing this kind of stuff for a long time, indeed.

It's all internal, Kinect was the first product out of the R&D apparently (its in the Wired article).