Some highlights from the article. Sounds like Eyetoy 2 will probably be bundled with PS3.
http://www.gamespy.com/articles/584/584744p1.html
http://www.gamespy.com/articles/584/584744p1.html
Imagine that you creep up to the corner of an alley. Then, when you want to peek around the corner, instead of strafing your character over you could just move your head and literally 'peek.' Dr. Marks showed a demo of a street scene where he moved his head to look down a street and then moved it back to duck around cover as the bullets flew.
Unfortunately, head-tracking technology uses up about 20% of the CPU with the current generation of game platforms. No first-person game developer would want to do that. But in he next generation of hardware, the processors are many times more powerful and the drain on system resources is much more trivial. Expect to see some cool things!
But the next generation of camera interfaces can measure the actual distance to objects using infra-red pulses. And they're extremely precise. They're able to trace the exact contour of any shape, and they can track it as it moves toward or away from the camera. This changes everything!
Hold up, he hasn't even started. Cameras with this kind of resolution can do real-time motion capture. So, you can dance in front of the camera, and all of your movements can be tracked and then applied to a digital model rendered on the screen. In his next demo, Dr. Marks moved around and on the screen a skeletal version of himself moved to match. He'd wave his arms and the skeleton would do the same. Physics was built into the simulation, so when he punched his arms forward, the skeleton punched, and it could hit objects around the virtual room. Because the camera was tracking distances, it could actually track where he was in a 3D space -- standing in certain spots triggered certain actions, for instance. The Eye-Toy's motion tracking looks pretty primitive in comparison. Imagine the gaming possibilities of this kind of interface! You'd literally be, full body, involved in the on-screen action, stepping into another character.