I'm REALLY just curious to see how this thing works. I doubt I would buy it, unless the games looked groundbreaking and extremely fun. I think a psychological survival horror type game like Eternal Darkness would be very interesting and it could be a near addition to other core games like that, for changing character responses relative to how relaxed you are, or make enemies more or less aggressive.
On the opposite end of the spectrum, there could be HUGE potential in a new "relaxation" genre, like the fitness one, that actually helps to improve one's lifestyle and thus help bring in the expanded audience, especially in today's stressful society.
And the third tier of games, I can see some more gimmicky stuff being created that measures things like heart beats and turns them into onscreen enemies which you must shoot, or as mentioned in the original post, breathing, which moves things like walls.
Technology is sure starting to get creepy advanced :/







