A patent doesn't mean they are going to actually build it. All it means that if someone else builds it, and makes a lot of money, then MS will sue them for the money.
Unless your Apple. Then it means someone else already built it and you paid some people off to push a patent through with your name on it so you can then sue. lol. Anyway, it is an interesting concept and is a move towards real immersion in gaming, but I just dont see this going anywhere with current technology. The optics, resolution, and processing just arent possible to do in a budget that people can afford right now. Maybe in 5-10 years.