SEATTLE (AP) — Microsoft is expanding its exploration of a new technological frontier that allows people to mix the real world with three-dimensional projections of life-like images.

An update of Microsoft's Windows 10 software will include features for playing games and watching video in the realm of "mixed reality." The term refers to the melding of the artificial with things that are actually happening around us.

Microsoft also plans to introduce a new mixed reality headset and motion controller in time for the holiday season. The equipment, to be made by Acer, will sell as a package for $399.

That price is far more affordable than what Microsoft has been charging for another mixed reality headset called the HoloLens. That high-end device sells for $3,000 to $5,000.

Microsoft previewed the new Windows features Wednesday at a conference in Seattle. The update will come later this year.