The gaming company Ivanovich Games has created a sort of "game-ception" using Apple's ARKit. They have designed a Steam-powered playable arcade machine game called "Operation Warcade" which can now be projected into real life using augmented reality, creating a true "go inside the video game" experience.
The person playing the game in the video has a virtual reality headset and is playing the game on the machine with the VR headset, while the person filming is able to watch him play without a headset using augmented reality and the ARKit. Somehow, they've managed to have the game send real-time video streaming to the iPhone which allows the user to watch what the player is doing without a VR headset.
In the video's comments, the game company also says that the next step is to improve the video quality and also to let the iPhone interact with the game, rather than having to use a VR headset to play. This way, you will not only be able to watch the arcade game using AR but will also be able to play it.