According to a report from the MIT Technology Review (via Windows Central), this project that Microsoft is working on is called Room2Room. As you can see in the photo above, this is like the extension of RoomAlive, except that it can scan the people in the room and project that image to another room, and vice versa.
The end result is video conference call in which you will be actually talking to the a life-sized figure, as opposed to a tiny head and face on the screen. Chances are you’ve seen similar technology in a variety of movies and TV shows, so this is just one step closer to making it a reality.
However, there are certain limitations that need to be worked out. For starters, its setup process is apparently a bit complicated. Also, the image projected is still relatively low resolution, especially when blown up in size. Microsoft Research remains optimistic that these kinks can be worked through and that in the next several years, this might be how companies video conference in the future.