This demonstration video starts off interesting enough, showing an ARToolKit modified to display a Virtual On-type HUD and measure distance from objects you point the device at, but it gets really neat toward the end, when the cameraman approaches the HBV-502-H8 Raiden standing on his desk and actually dodges a shot from the model toy.

Though it's just a technical demo video, I'd love to see turned into a full experience, similar to Total Immersion's Ghost Busters-esque augmented reality haunted house, Paranormal Activity. If I had the know-how and technology to set something like this up myself, I'd position Exosquad figures around the shelves of my office and hang them from the ceiling, playing "shoot the toy mechs" all day.

[Via MechaDamashii]