its a cut throat world, If one company sees the opportunity to take out its rival, then it will.

So the EyeToy can track movement in 3D space?  It can track individual finger movement?  You're obviously basing your opinion on very little information and if this is indeed what Microsoft is going to show at E3 you're going to be very surprised and how advanced this tech is.

I saw other videos demonstrating how it was able to track your entire body in 3D space meaning you could do stuff like reach forward with your arm and a 3D character could match that movement.  They were also controlling media center with hand gestures a la Minority Report.  Strangly all those videos seem to be gone now, which leads more credence to the theory that MS wants this to be a surprise at E3.

We shall see.

The ZCam is much more than an Eyetoy ripoff.

The Eyetoy is a passive sensor, just a light detecting camera. The ZCam also has a simple camera, but it adds another, active sensor to the device. This active sensor sends out a pulse of infrared light and measures the time it takes for that light to reflect off an object and return to the sensor. This allows it to accurately identify an object's size in two dimensions and position in three dimensions (the letter Z representing the third dimension, depth) without requiring any other source of light. It's the ZCam's ability to reliably 'see' all three dimensions without an external light source which is its distinguishing feature.

It doesn't matter how many times you explain how it works, it will be called an EyeToy rip off. That is the nature of the internet.

..

no internet while drinking...

That's a great post right there... The take away SHOULD be "someone is pushing the medium further...  awesome."

Now, Sony will need to release the EyeToy 3 to compete, and try to beat it out, and Yipii will have to come with the Power Glove 2, and so on, until you can just mount one orb in the middle of your room and enjoy all your entertainment needs by thinking at it.