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 Wikipedia defines augmented reality as, "the combination of real-world and computer-generated data (virtual reality), where computer graphics objects are blended into real footage in real time." (You can read Threeminds posts about a few AR experiences here.) It's an exciting time because we're at a point where the hardware, software and maturity of data/networks have converged and we're seeing offerings that are priced within levels for average consumers to afford.

One of the largest and most talked about events at the E3 Expo was Microsoft's demonstration of their Project Natal technology for the Xbox 360 system.  Project's Natal's technology uses a camera/sensor to track a user's movements, and map that movement to an avatar/character in the game-space.  The most intriguing aspect of this technology is that it doesn't require the need of any controllers or attached tracking elements on the individual.  The technology is smart enough to know which of your different limbs is doing what, and correspondingly maps it onto the screen.  Sony, on the other hand, demoed its own version of augmented reality interaction for the PS3 through it's already available EyeToy. Unlike Microsoft's Natal technology, the PS3's EyeToy relies on a couple special sensors that a user holds onto. These sensors, that look a bit like funny batons, are precisely tracked by the camera and instantly translated onscreen. And from the looks of the video, the tracking looks pretty precise. (Note: motion sensor portion is about 8:30 into the movie.)

Sony also has a simpler form of AR coming out before the end of this year called Eye Pet -- although a bit more limited and something that's already being done on mobile devices and through today's computer webcams... It still does open up the possibilities of what can be done from an entertainment perspective.

Comparing the two technologies, the Xbox version definitely allows for more freedom, unencumbered by controllers.  However, I could imagine that technology would be susceptible to ambient background interference that might be occurring in the same room (e.g. roommates/pets walking by, outdoor activity seen through the window by the camera, clothing and accessories that might confuse the recognition system).

What Might These Technologies Lead To?

Using the 360's Natal control, a user potentially could have the ability to interact with screen elements in a way similar to the futurist-vision within the movie "Minority Report."  By simple swipes or pokes of a user's hands and fingers, information could be literally picked-up, shoved and tossed around.

    •  You could try on clothing via your avatar.  There's already a company showing off this kind of proof-of-concept. 
   •   Porn? I feel funny bringing this up, but if the adult entertainment industry isn't already hard at work on how to make you the star of your own adult film... I fear the entrepreneurial spirit in America may be dead.
   •   Further enhancing games similar to Rock Band, Guitar Hero or DDR (Dance Dance Revolution).  Each of the participants would be able to perform the actions by moving onstage with one another, even if playing over a network. (Maybe I'm just secretly dying to tell someone's avatar, "You got served!")

Many of the items have been involving you controlling an avatar or self-representation onscreen. But I think there are opportunities as well by utilizing the technology similarly to the PS3's EyePet. I feel the most interesting execution of the technology revolves aroundvisually manifesting things/people in your house/dwelling.  This could apply to celebrities, historical figures... heck, even a deceased relative.  Imagine sitting on your couch and when you look into your TV screen, you see sasquatch sitting next to you as you ask it, "Why are you so unphotogenic?"  And then, you both proceed to virtually arm wrestle.

Microsoft's Nadal is rumored to be available for release sometime in 2010 and Sony's PS3 Eye motion sensor doesn't have a release date as of yet. That being said, stay tuned for a lot of augmented reality development news coming months for game consoles, mobile devices and home computers alike.  And while they're developing away, what would you like to see?

Ted Hoot