Some students from USC's School of Cinematic Arts and the Viterbi School of Engineering want you to stop controlling a video game world and start playing in a video game world.
Sounds like the early 90s all over again, I know, but where these kids go right is in using test footage from Skies of Arcadia on the Dreamcast.
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While it's just concept footage - they're not actually playing it like that, just showing how the project could work - the goal of the project is to use common, off-the-shelf components like the PlayStation Move, Razer's Hydra and John Carmack's fancy Project Oculus VR headset to put you in a virtual world.
Oculus Rift and Project Holodeck: The Calm Before the Storm [Project Holodeck]