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ramses01 said:
Jinova said:

No I read it, several times.

"That's the long-winded answer of why we stopped that research. We basically got to a point where we felt we understood the limitations of the tech. Sony as a group wanted to do a motion controller that could work with a broad variety of games."

That quote alone sums up the article for me.  Its limited, deal with it.

I admit, its a cool tech for interfacing and menus  etc..., but for games?  not so much

LOL, thanks for the quote proving my point.

I was under the impression that they thought the technology was there, it just wasn't cost effective.

"So when we were working with the 3D cameras we felt the cost of the camera outweighed the advantages of what it offered. "

That quote is near the top of the first page. 

What I got out of that is that they looked into it years ago and decided that it cost too much for what they wanted to do. Now may be a different story. It looks like they stopped looking into 3D camera stuff before Move. 

"Eurogamer: Did you have a stressful meeting with the execs when you pitched Move?

Anton Mikhailov: Yes. And, actually, at that time we were investigating a lot of technologies. We were looking into 3D cameras like Kinect. That started way back in 2002, so we already by that time had stopped that research. We worked with the London Studio guys on that."

It looks like the research was done a while ago.

So... it's not that the tech isn't advanced enough, or that it isn't there, it seems to me that it was more of... at the time they looked into it, the tech wasn't where they would have liked it to be, at the cost they would have liked it to be.