"In 3DV Systems, we have taken a state-of-the-art next generation 3d imaging technology, originally used in advanced defense systems,

how do you use this tech for advanced defense system?

and transformed it into an affordable consumer device that will revolutionize the way gaming is experienced.

Wonder how much 'affordable consumer device' costs.

http://en.wikipedia.org/wiki/LIDAR

Military applications are not yet known to be in place and are possibly classified, but a considerable amount of research is underway in their use for imaging. Their higher resolution makes them particularly good for collecting enough detail to identify targets, such as tanks. Here the name LADAR is more common.

Five LIDAR units produced by the German company Sick AG were used for short range detection on Stanley, the autonomous car that won the 2005 DARPA Grand Challenge.

Other uses include meterological scanning, mapping, and detecting submerged objects in shallow water. But those applications require far more powerful lasers than the IR emitters in the Z-cam.

Here's a nice article from 2005 that I turned up:

http://www.laserfocusworld.com/articles/231734

The next-generation scanning 3‑D ladar systems will likely use a pulsed time-of-flight methodology and consist of a clock, pulse generator/driver, laser, scanning MEMS mirror(s), ­transmitting/receiving scanners, photo­detector, and data-­acquisition electronics (see Fig. 1). The data obtained from the ladar device can then be visually displayed for the user and/or wirelessly transmitted to a data-collection computer for more in-depth processing. A potential example of the latter would be multiple soldiers at different locations who would use GPS (global-positioning-system) integrated ladar to scan the same field of combat. These multiple input scans would then be transmitted to a central computer to build 3-D maps and identify targets. The key to miniaturizing and making a 3-D real-time scanning ladar affordable, though, is to use innovative components and a tilting MEMS mirror in novel but practical ways.

And compared to military equipment, "affordable consumer device" might just mean that it costs less than $1000.

looks awesome now lets see how this works and if it can be ready intime for the next generation of consoles

I doubt Microsoft would use something like this as their standard controller. This is probably the company that is going to develop their next console's version of the Xbox Live Vision Camera. Nothing more, nothing less.

Yeah thats actually the key here. Something like this from military application down to consumer "affordable prices" usually mean under 1000. basically the attachment could range anywhere from 200 to 1000.

http://www.reghardware.co.uk/2009/02/24/gaming_peripherals/

wonder if this tech is being planned to be used by 360. Or this is something totally different.