This is impressive tech. Facebook’s Oculus Rift has nothing on the potential of this.
The video says it all.
For more detail and a view of the prototype headgear, check out the IEE Spectrum article: Sulon Cortex Headset Seeks to Meld Real and Virtual Worlds.
A thing like this could produce some seriously altered states.
Imagine playing this in the woods or a field and broadcasting live over wireless. Augmented reality is about to become quite normal.