Being as it's coming out as an accessory (like the PSeye or wiimotion +), not as the main controller, it will have a more difficult time taking off, and it all depends on the games.

Nintendo has WSR, Red Steel 2 and a whole bunch of 3rd party sports games to push the WM+, which will be about 1/3-1/5 of the price of the camera (just a guess)

MS needs to show games for it before we can judge if it will suceed or not. Milo looks like they could actually turn it into something awesome

Racing game and adventure title are easy. Shooters are what I'm worried about. you bring up a good point. However, I'm gonna go on a limb and say that peripherals will be big with this tech as well, though perhaps with only 1 or two buttons, or less, which would make such games much easier to play.

For me it is just two early to tell. What was shown in the two videos impressed the hell out of me, but the actual onstage demos were no where near as impressive. Why not do the thing with the Milo kid live on stage? When things look uber impressive in promotional videos, and less impressive in real life demonstrations I get skeptical.. my guess is that this could be really impressive next gen, but lackluster this gen. for me it's just a wait and see.

It'll either do much of nothing or fail this gen, but it seems likely it could make some sort of difference next generation.

Yes, just like touch screens and voice recognition are killing the computer keyboard.

No matter how much this takes off, controllers will still exist for a long time.

As cool as the technology is, this is really showing me how much people (including Microsoft) don't understand the Wii.

has AMAZING potential. it will all come down to if M$ can make it cheap enough/bundle it with games people want to play and gain market penetration with it. if they do then developers need to make lots of games with it. If they do then it will be FANTASTIC!! if not it will fail.

This.

Its a shame how petty most people here are proving themselves to be.  This isn't about Nintendo and Sony.  This is . . . BIGGER than that.  This is about moving BEYOND the current bounderies of gaming and sparking the imaginations of the next generation of game developers.  While I was somewhat impressed with various aspects of the presentation, my eyes were opened when we were introduced to . . .

Milo.

You see, if you guys can look beyond the games you currently play and beyond the basic elements of the presentation, the possibilities are mindblowing.  Imagine where this could take gaming AI and our interaction with it.  Imagine Mass Effect 3 or Elder Scrolls V where NPC characters are able to be interacted with like Milo.  Or mystery and adventure games where your can figure out puzzles by interacting with the environment in revolutionary ways.  How many developers (including Miyamoto, Kojima, Ancel and Spector) looked at this and immediately found themselves scribbling down ideas that came to their minds.  Or talented Hollywood people that have yearned to move beyond movies and needed the right inspiration to see the next step in interaction.

Folks . . . this is revolutionary for the ENTERTAINMENT industry, not Microsoft.  They just introduced it.  And it took the Eyetoy and Wiimote to inspire this to a point. 

But as JHawk (Rock Chalk?) stated, MS is treating this just like they did Xbox Live 1.0.  This is where they work out the details and help devs make the adjustment.  v2.0 of this will come out next gen and take it to the next level.  More than ever, its clear that they DO have a plan and its impressive to say the least.

Its $200 i dont see this as a worthy for the cost purchase.

Are easy, really? Please tell me how do you move a character? How do you hold and exchange inventory?

Well, and a peripheral completely destroys the idea of no controller at all, and "you are the controler", that they want to bring...