It should be noted that the perspective only looks correct if you're standing where the camera is. The environment is made up of 3D models being rendered in real time by a computer, and the angle of those walls is changing based on the tracked position of the light orb on the tip of the Playstation Move controller attached to the camera. Similar stuff has been done before with a wiimote and some IR lights:


Very cool stuff.

But if they can set it for one perspective then can do it for any. So this was made for the camera, but it wouldn't be difficult to alter it to make it for the person on the couch. A Kinnect like sensor in the room can watch head movement to determine where you are looking.