Of course, Microsoft can't call it a "Holodeck". Instead it's been titled the "Immersive Display Experience". The patent, which you can read in its entirety here, states:
A data-holding subsystem holding instructions executable by a logic subsystem is provided. The instructions are configured to output a primary image to a primary display for display by the primary display, and output a peripheral image to an environmental display for projection by the environmental display on an environmental surface of a display environment so that the peripheral image appears as an extension of the primary image.
Luckily for us, Ars Technica broke that down into English for us. The patent is for a projector to enhance the gaming experience, not replace it. It would extend the gaming environment to the user's peripheral vision to make a more immersive environment.