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JaggedSac said:

It will process at 30Hz I believe has been said.  As for hardware, there are already chips that specialize in performing the convolutions used for edge detection.  This is obviously going to be faster than doing it with a standard CPU, even when using the best algorithms.  I think they are going to have some for of these specialized hardware, and I think it will not be as expensive to produce these chips as you think.  Also, it processes 640x480 in depth, not sure I would consider that high-rez.  Doesn't need to be really.

 

Oh and the Z-Cam guys were talking about going to market with their camera for $50 - $75 before being purchased by MS.

30Hz?  Wow I hope not.  That will yield some pretty crude data for gesture recognition.  I bet its at least 50 Hz, if not 60.

The z-Cam relied upon a processor/memory in the device it was attached to, I believe, so $50-$75 sounds about right... being just a camera.