I have seen demos of crappy web cams doing full motion tracking and I think the PS eye is a level above crappy.
No one is claiming that PSeye is anywhere near as good as kinect for this type of dance "game" so from that point of view it may not be pissible for the EXACT x360 game to work on the PS3. Maybe PSeye can't track 20 limbs at the same time but maybe it can track 19:).
Surely the PS3 PSeye can handle a cut down version of the game with maybe 8 or 12 limbs instead of 20.
I must admit I had never heard of KungFu Live but after reading a preview and watching some videos of the game it is proof (for those that claim it can't) that PSeye can indeed do full body tracking (although how many limbs or people it can actually track is anyone's guess).
Sony should really advertise the idea that Move can do kinect stuff but kinect can't do Move stuff...meaning button input.
All those exercise and yoga like games that are planned for kinect can easily be done on with Move.
