Computing power is an integrated part of our physical environment, and since our physical environment is three-dimensional, the virtual studio technology, with its unique potential for visualizing digital 3D objects and environments along with physical objects, offers an obvious path to pursue in order to envision future usage scenarios in the domain of pervasive computing. We label the work method virtual video prototyping, which grew out of a number of information systems design techniques along with approaches to visualization in the field of architecture and set design. We present a collection of virtual video prototyping cases and use them as the platform for a discussion, which pinpoint advantages and disadvantages of working with virtual video prototyping as a tool for communication, experimentation and reflection in the design process. Based on more than ten cases we have made the observations that virtual video prototypes 1) are a powerful medium of communication in development teams and for communication with industry partners and potential investors, 2) support both testing and generating ideas 3) are particular suited for addressing spatial issues and new ways of interacting. In addition practical use of virtual video prototypes has indicated the need to take into account some critical issues including a) production resources, b) hand-on experience, and c) the seductive power of virtual video prototypes.