A pal told me about this yesterday, and it looks like something straight out of a sci-fi movie.
In Fragments, your AR headset will first map your play space - likely your living room. Then the game overlays the play onto your real stuff: game characters sit on your furniture, and game events take place right in front of you.
"We're able to put a thumbprint on a matchbook that we hide behind your coffee table, so that you actually have to physically get up and find that pivotal clue..."
I'm not fond of the avatars (as they are here) or the clunky avatar-delivery of the storytelling, but you can see where this can go, of course. Amazing stuff.