Microsoft demoes some interesting research work during the internal TechFest event-- such as a wearable multitouch projector prototype.
The projector sits on the user's shoulder, beaming images via pico projector on walls the wearer can interact with as a fully interactive surface. Handling interactions is a depth-sensing camera.
The TechFest prototype displays a Windows Phone-style graphical user interface, complete with touch, pinch-to-zoom and scrolling.
While the work is still in early prototype phase, Microsoft hopes to make the hardware smaller and thus more portable. We already have pico projectors integrated in mobile devices-- will they be turning walls into touch surfaces in a few years' time?