It will happen first on Nintendo. Implementation would be less costly and more effective. Of course, I doubt it would be done first by Nintendo themselves, but it will happen first on the Wii.
The PS Eye can do it, but when someone else walks into the camera's view, it bungles things up. Devs would have to work on that, and that would make it more difficult. The Wii, no. It'd still be fine.
All the Wii would require is a $5 peripheral to get that running. Meanwhile, the PS Eye costs forty dollars. Which sounds more likely to have a decent adoption rate, based on price?
It'll end up happening on both consoles, most likely, but on Wii first, and it'll be a boxing game rather than a FPS. I think Wii will get a FPS as well before the competition gets their first game out, but I think it'll first be a first- or second-party boxing game.
The 360 also has a camera that's capable of this, too, by the way.
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