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Sky Render said:
On a technological level, the Eye Toy is about as sophisticated as the Wii Remote's camera, save that it's a standard camera and not infrared. I don't think it's really fair to gauge either technology as superior, per se, as they follow very different methods and have very different goals in mind. The Balance Board is a real-time tracking device which deals with a constant stream of data, while the EyeToy is a situational tracking device which only reacts when the incoming data changes enough to allow for it. The former has an excessively high level of sensitivity which makes for a lot of error-checking, and the latter has latency issues which make for more frequent tracking errors.

The board is extremely precise as a measuring tool, and due to the way the software is designed towards measuring constant, minute shifts in input and translating them into character movements,  I would venture to say that it's a bit more sophisticated than the motion tracking software utilized by the PSEye, which has no way to accurately gauge balance since it uses body reference points (hands, feet, head, anything moving that contrasts with the background the camera sees) for input. 

Or it could just be that there hasn't been any software coded to use the Eye that really showcase its full capabilities. In all likelihood, there never will be either. 

Now if the PSEye had used stereoscopic cameras, that would have been an entirely different issue from a hardware standpoint, but ultimately it still boils down to software implementation.