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    Microsoft Augmented Reality Concept Fuses Virtual World with Reality [VIDEO]

    Microsoft researchers have created a new augmented reality concept by improving how virtual simulations react in the physical world.

    [More from Mashable: Google Confirms It’s Working on Chrome for Windows 8]

    The Kinect sensor is used in a process called Kinect Fusion, which allows projections of objects to react to different surfaces. Kinect Fusion is possible with the Beamatron -- a device consisting of the Kinect sensor and a projector. It's attached to a spinning head in the ceiling and allows it to take detailed maps of physical spaces.

    This technology projects objects anywhere in a room and allows realistic movement. It bumps into objects such as table, chairs and walls. Plus, the simulation is never distorted when crossing over bumpy surfaces.

    [More from Mashable: How Windows 8 Tablets Could Seriously Challenge the iPad]

    It's now possible for virtual objects to interact within physical spaces like never before. The projector can sense what is going on in the room and shows changes in seconds.

    In a video, Andy Wilson, Microsoft principal researcher drives a 3D image of a toy car around a room with a remote control. It bumps into walls and drives over hills.

    SEE ALSO: With Augmented Reality, Wallit App Assigns Virtual Walls to Physical Places

    The Microsoft researchers are also working to apply this augmented reality technology to help individuals in their surroundings. Future technology will scope the environment and bring "notifications and other graphics to the attention of a user by automatically placing the graphics within the user's view." Other applications of this augmented reality technology may be applied to architecture and gaming.

    Check out the above video for more details.

    What do you think about the virtual and physical world merging as one? Tell us in the comments.

    Image courtesy of Flickr, MichaelMarner

    This story originally published on Mashable here.

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