I've decided no to go for Augmented OS for several reasons including following:
1: I work with interfaces at my job and I want to try something different
2: I've found out it's quite popular topic and already few people are dealing with this
Instead I'm opting for the Games & Entertainment category and my new topic is generated graphic. As an input I will use real visuals and sounds (camera/microphone) and output will be set in the same environment (augmented reality).
I made few sketches to demonstrate general idea.
I'm changing my mind



