I was thinking of this idea for a NBA simulator where you get to actually play with Michael Jordan and other great players. Here is how it would work....
Basically they would have 9 players / actors that would all be inside the game. These would be college level players that could basically try to impersonate Michael Jordan and the various players. Then you're there, with your headset on, actually playing basketball, as one guy among 10 guys playing, on a real physical court, with a real ball, and everything would be calculated into the virtual world seamlessly. If Michael Jordan passed you the ball, it would look, feel and sound like Michael Jordan is passing you the ball. The guy that would be playing Michael Jordan in the simulation would be a similar size / build as Michael Jordan, but might not look anything like him in real life, but in the VR world he looks exactly like Michael Jordan, and you believe the experience, that you really are playing with Michael Jordan in his prime.
Because you're running around on a real court, actually playing real basketball, everything would seem completely legit. Obviously this is like 20 years away, when VR headsets might be the size of normal sunglasses, so it's like you're just wearing some sunglasses while playing basketball. The tracking would have to be flawless, and virtually instantaneous. Everything would have to be tracked perfectly, otherwise you'll get people running into each other, into the basket support, etc, etc.
It might look absolutely stupid to see 10 goofballs playing basketball with glasses on their heads, but for the one guy that is playing for the experience to feel like he's really playing with Michael Jordan, it would seem incredible.
I can easily see this happening.