This article addresses the design and study of novel interaction settings and systems supporting collocated interaction. More specifically, we aim to analyze the implications of two different interaction approaches, namely first-person and third-person interaction paradigms, and the corresponding theoretical approaches when designing and developing collocated experiences for children with Autism Spectrum Disorders. This analysis will be supported by the outcomes of several examples of full-body interaction collocated experiences aimed towards promoting social initiation and collaboration. Moreover, we will present a series of goal-driven guidelines to consider when designing with various interaction paradigms. Finally, we will discuss future work to better understand the implications of constructing paradigms for intuitive use of these fullbody interaction systems.