The demo was built using the Kinect beta SDK and a Windows Phone. It creates a game engine which creates something like a holographic effect. The camera on the Kinect analyzes the position of the user and the game engine adjusts the image to create the illusion of a real holographic 3D object.
The game engine supports anaglyph 3D (red/cyan glasses) for a better effect in real life. A Windows Phone app controls the game itself, as well as allowing the user to fly the helicopter using the accelerometer in the phone.