During a HoloLens promotion earlier this year, Microsoft previewed how video games could work with its augmented reality gizmo—specifically Minecraft, which they happened to purchase for a cool $2.5 billion last year. During its E3 keynote this week, Microsoft performed a live demonstration of Minecraft, and the promise is dizzying.

The demo begins simply enough, with two reps on stage playing Minecraft together, one on a tablet, the other using the HoloLens, which can turn any surface into a screen from the user's perspective. "It's awesome to play from a controller, but can we show them something new, Saxs?" asked Lydia Winters, Minecraft's brand director.

Saxs Persson, from Microsoft, then stands up, double guns the wall with his hands and then points at a small table next to him. He tells the HoloLens to "create world," which is cheesy, but then some real-deal magic begins. In Saxs's view, the signature solid-colour cubes of Minecraft begin to materialize on the surface of the table.