"Augmented reality device" could be the Toy Box.
A patent filed by Disney seemingly confirms the company's development of a forthcoming gaming console. The U.S. Patent and Trademark Office recently revealed a patent application from Disney that details a gaming console predominately focused on 3D augmented reality.
The application points towards a device that can capture a real scene and then augment it. For example, it could take a picture of a coffee mug situated on the top of a table and then animate the cup itself. When the user looks at the mug on the device, it'll appear as a cartoon character.
Disney's device could very well be the device previously named as the Toy Box. A Disney executive had previously described the Toy Box as a console with "extensive mobile and online applications," which would feature interactions from a number of Pixar and Disney characters.