Johnny Lee a PhD. Graduate student at Carnegie Mellon University in the Human-Computer Interaction Institute:

Using the infrared camera in the Wii remote and a head mounted sensor bar (two IR LEDs), you can accurately track the location of your head and render view dependent images on the screen. This effectively transforms your display into a portal to a virtual environment. The display properly reacts to head and body movement as if it were a real window creating a realistic illusion of depth and space.

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