The RealD system works quite well in theaters and will also work well for home theaters at the right price point.
Several things are required: A DLP projector capable of 240 frame per second refresh rate (LCD won't work), an active optical polarizing switch either inside of or (most versatile choice) in front of the projector, and a video signal source capable of delivering the RealD L & R subframes sequentially to the projector while controlling the optical switch. This could be done either by a special blue-ray player, or a PC with the necessary playback software package. Also, a silver projection screen is required to preserve polarization. (Matte white doesn't work.) This system would be easy to implement for home use.
It is just a matter of RealD licensing their technology at an appropriate price. I think it could beat the flat screen technologies several times over on price with theater quality performance if marketed today. The system price increments would be determined by the projector. XGA, WXGA or SXGA+ (native resolution) projectors would work fine, 720p (native) would be better at an intermediate price and 1080p (native) would be top of the line.
The interlaced flat screen / passive glasses solution is a kluge and will likely disappear. Also, there is no excuse for the high price of the active glasses other than the current low rate of production. The technology is trivially simple. Eventually, they should get down to <$10 per pair. The passive glasses cost theaters around $0.50 each in bulk. The $1.50 surcharge you pay at theaters for RealD movies covers the glasses plus the licensing fees.
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