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I thought it was something that literally projects a material physically onto a surface. It's much more disappointingly mundane than that.

Bottom of idea barrel===scraped.

It seems like the color of the furniture would have to be white, or nearly white, in order to project a full range of colors. Do they have a way of dealing with this?

Presumably the room also has to be dark, which might make it a bit harder to understand how the furniture will look in context. I'm curious: is there any projector technology that could make something like this work in brighter rooms?

Its really simple technology...

1. Brighter projectors.

2. The common technique called projector stacking. You'll see it in large outdoor events and more sophisticated projected mapped productions such as in theaters and fashion shows.

These stacks (which may not only be vertical in nature) automatically can adjust the projection for the offset of each projector so that everything lines up at the destination.

They say the technology is just for show rooms and stores anyway, so I guess if they are buying the projectors and everything else, arranging a white piece of furniture isn't much more difficult. It isn't like people buy the item and then project on it.
This is pretty neat from a technical standpoint. I've used MadMapper before and it was kind of a pain to setup to use to do projection mapping.

First you had to hand map each section of the object you're mapping the texture onto. This involved having the projector project a pattern and you'd move and deform various mapping polygons (using a mouse) until you didn't have any bleed or holes in the projection. If someone moved (or more likely accidentally bumped) the projector or the target object the polygons had to be manually adjusted. It seems these guys have automated the process of mapping the object in physical space, against a pre computed model. They had some bleed above the top of the chair in their demo video so its not yet perfect.

If you're Ikea and can set this up in the store, for buying a couch, and just have people click their fabric combination they want to see. I see this being very useful because they can't show every fabric. Granted Ikea's are huge to accommodate lots of floor models, but this would still be a draw.

If Ikea had a whole bedroom or living room with projectors all around, you could try out an entire decorating scheme without having to pull everything together. I'd take the ferry from Wall Street to Red Hook just to play with it for a bit.

So rock on VizeraLabs, and start talking to Ikea and BoConcept.