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http://13thlab.com who got acquired by Oculus made something very very similar:

https://www.youtube.com/watch?v=rA2NI4NgsV0&t=19

so the technology for doing this is feasible and real.

Their previous kickstarter: https://www.kickstarter.com/projects/1203948132/rescape-fps-...

That's a cool-looking video. It looks like it isn't AR though -- it looks like they're taking the real-world position of the phones and using that to drive the positions of the players in the game. They've modeled the game so the level looks the same as the office they're playing it in.

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