The Playroom is a new tech demo showcasing what the new combination of the motion sensor bar and new Dual Shock Controller.
The tech demo shows people playing with augmented reality objects of their own and Sony's creation while watching themselves on the TV.
They're able to shoot the creatures out, suck them back into their controllers, create their own designs for little creatures and spawn them, and of course, swat them out of the way.
Arcade games are also on show using the new camera, as well as the streamlined interface for selecting AR bots using the Dual Shock Controller's touch pad.
Ultimately, it seems to fall somewhere in between Sony's original vision for the EyeToy met with a smattering of Kinect-style lounge room entertainment.
It's unduly cheesy as these things tend to be, and it's just a tech demo, but it does give you an idea of how Sony plans to use AR to its advantage in the new generation.
Check out the video below: