I think that's the future of arcade games, immersive displays.  I was just toying with this idea of an arcade game that's like Rock Band, but with real-feeling instruments with a surround screen that shows a massive cheering crowd, so you feel like a real rock band playing for a sold-out crowd.  And maybe there's pinhole cameras in the screen, so when you're done, you have this video of your band brining down the house.