Microsoft has been working on something in secret for years now and they finally are showing it off. It's called the HoloLens and I would describe it as a cross between Google Glass and the Oculus Rift.
The selling point of the Microsoft HoloLens is that it creates holographic, artificial holograms within the space you are using them. Of course this could be used for a variety of different reasons like watching TV on a virtual tv screen, playing a video game that is set within the walls of your room, or even helping a design view 3d models of their designs.
Apparently the HoloLens creates holograms out of the light available in the space you are in, and orients them in such a way that they look real to you.
Now, Microsoft is talking about some big things here. If they can deliver, this will be the best thing since sliced bread. Unfortunately it's probably not as perfect as it seems. We all know how the Google Glass turned out....
That being said I have doubts that the processing power can actually keep up with displaying things in a real space without having some sort of latency issues. Now, latency may be fine for a 2d screen experience, but in 3d it will make he user physically ill.
Last thing to note, go check out the 2009 promo of Kinect, the Kinect we see today is nothing like what is was promoted as. We can only hope that Microsoft delivers, but I'd rather be surprised then disappointed.