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Given Microsoft's research into the field (http://research.microsoft.com/search/search.aspx?qu=head+tracking&id=all), Microsoft would definitely have a head start (there are papers there that date back 10 years). However, I just can't see Microsoft jumping on such technology.

As for what type of game first. Some form of minigame collection most likely. This will allow for a decent testbed as different games can utilise it in different ways. After this, who knows.