This single still is from the widescreen version of ?Matriculated?, one of the Animatrix animated shorts. It has been considerably scaled back from the original material.
It shows what is essentially a full sensory immersion LAN. An eight person, totally self contained full-immersion VR machine. As shown, the interface method is direct neural biofeedback; the staple for the Matrix universe. Each of the person's brains are connected to the system via their brainstem, allowing full two way bodily sensory stimulus. However, there is no connection to the greater internet.
There is also no possibility of connecting to a wider network, without laying more cable and additional hardware. Everything necessary to create a full believable VR for up to eight participants is available locally. It is not at all hard to picture something like this being the replacement for 'LAN parties' once brain-machine interfaces fully mature.
This is also the ideal kind of interface to use, if you desire to wait out a cataclysmic event in the wider world, and is another pro in its favour. Easier to create than a holodeck, even if holodecks are eventually created, this will be with us sooner.
Link: Animatrix: Matriculated