Microsoft may have the answer to this massively important problem. The IllumiRoom is currently being developed by the company's research division, and its prototype is currently being shown at CES in Vegas. It's apparently awesome. According to its website, the IllumiRoom uses a “Kinect for Windows camera and a projector to blur the lines between on-screen content and the environment we live in… changing the appearance of the room, inducing apparent motion, extending the field of view, and enabling entirely new game experiences.”
Translation: It turns your room into an extension of your TV. If you're flying a helicopter on Grand Theft Auto, clouds whip around your walls. If you're playing Call of Duty, buildings and shit wrap around you as you walk through the battleground. If you're playing NCAA 2013, Bryant-Denny Stadium's stands surround you as you lead the Tide offense. (Katherine Webb fantasies can get uncomfortably real, I'm guessing.)
Take a look at the video below which shows the IllumiRoom in action. We want it now.
[H/T: Buzzfeed FWD]