I've seen a few videos of this in action. They've also applied the cloaking onto other things such as Balls and cubes. It seems to work pretty well, but there are few things that could still use work. As far as I know, special lighting is needed... anyhows, its a crazy concept, but I'm sure that our governments have developed something similar years before this.
OK I tried to get this game last month, damn otaku always beat me to the punch. Now that I got my grubby mitts on it, I am ready to declare this the greatest fighting game ever. Yes, yes, I have Virtua Fighter 4. Great game, almost flawless.