Microsoft has announced a new way to control games and its called Project Natal.
This new way of interacting with your computer is done by motion sensing without the need for attaching or holding controllers.
There really are not that many details about the product yet but from the video you can see that the device has more then one camera or sensor and it is probably setup like your own eyes to view motion and interpret it based on geometric primitives.
In other words it sees something the size of a human in front of it and when you move your arms then it applies that motion to a stick model which controls action in the game.
Relatively simple idea that does require both processing and hardware that is recently coming down in price.
If they can put 8Mpixel cameras on Phones today at a reasonable price then there is no reason they can’t use slightly lower rez cameras in their controller.
This type of technology has been used in higher end security systems for about 5 years now.
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