It‘s often joked about that way. The official term is CFSATS - the Canadian Forces Small Arms Trainer Simulator, which is manufactured by Fire Arms Training Systems of Suwanee, Georgia.
Basically, it is a fairly realistic simulator system which can effectively simulate the operation of a variety of weapons. Your unit will have C6, C7, C9, M72, M203, and a kit for the Carl Gustav. There are also modules for other weapons, and the system can be used to train artillery observers in its CGI mode.
The SATS can simulate all standard range practices and PWTs, as well as a variety of operator-designed serials. It can factor in weather (its ballistic effects), and can be used to monitor proper application of drills and IAs.
What it basically uses are modified weapons fitted with laser emitters and a gas system which runs on compressed CO2 stored in tanks. The weapons look exactly like those you‘d be issued (although my unit‘s rifles are Bushmaster XM-15s rather than Diemaco C7s), and feel similar, although the C7 is someone "front-heavy" because of the gas cylinder apparatus. The laser doesn‘t pulse like your Nintendo light gun - it is a constant beam, and a camera mounted above the projector records the hits. SATS is computer-zeroed, so the operator can zero and adjust weapons as needed.
There are sensors in the C7s which monitor cant angle, barrel movement, trigger squeeze, and butt pressure, which the operator and his range NCOs can use to coach shooters.
I could go on for ages about the system, I‘m a trained operator, so if you want to know anything else about it, just ask.