There are no post-production effects added to this video, everything, happening on singer Olga Bell's face is happening in real-time, we're told.
How did they do it? (And not blind Bell's singer in the process?) With a Kinect hack of course.
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Zach Liberman writes on the Vimeo landing page for this video that they used a hacked Kinect, a laptop, an LED projector and FaceTracker code from Jason Saragih. You can see some making of shots in the second, bonus video below.