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This is how things get interesting for the RealiSM project: the prototype works as an integrated video recording, editing, and playback system – all working hand in hand to generate what they call reality substitution. A custom-built camera rig, consisting of 18 high-definition cameras which are pointed in all directions, seamlessly shoots a 360-degree spherical imagery that is stitched together in all three dimensions of space. These 18 high-def cameras are paired with 4 omnidirectional microphones, able to pick up sound from all directions relative to the prototype. The 3D spherical video capture is then processed and is rendered by a custom-built HMD that also features a front camera to orient the user’s presence in both the virtual and outside environments.

Aside from the usage focus of the prototype in the medical field, it is also seen as a potential tool for bringing immersive, real-time teleconferencing – bridging the gap caused by time zone issues between the two ends of the communication medium; and also to enhance entertainment experiences – particularly in games – by introducing extremely immersive and true-to-life visuals and audio experiences.

This isn’t the first time that Google’s investing has created a possible conflict of interest. In February, Bloomberg Businessweek reported that Google was developing an Uber competitor in anticipation of the launch of its self-driving cars. The search company, through its venture capital arm Google Ventures, had previously invested $258 million in the ride-sharing service in Aug. 2013, with Google chief legal officer David Drummond taking an Uber board seat

Google is extremely wary of the expansion of the vertically-integrated tech giants into other spaces, said sources, and it’s not staying still with Amazon announcing its entry into a local services market that some experts estimate does more than $400 billion in business every year.