Take a look at some of these videos:

PS2 Eyetoy kinetic game

http://www.youtube.com/watch?v=Au4d5anfjnA

PS2 Eye toy waggle thing device

http://www.youtube.com/watch?v=FpNdkm9s8AY

PS3 The Eye tech demo - 2 cups and a water lol

http://www.youtube.com/watch?v=JKkI5QBKFis&feature=related

PS3 The Eye tech demo - draw comes to life

http://www.youtube.com/watch?v=jBA1uWSDYjk&feature=related

PS3 The Eye tech demo - tank battle

http://www.youtube.com/watch?v=hXJPok3NZEk&feature=related

PS3 The Eye tech demo - head tracking

http://www.youtube.com/watch?v=FFN8cW1mSVY

Also PS3 The Eye has a mic embedded so it could possibly take commands and voice recognition as well. Of course it's not as advanced as Natal, but damn it's impressive. Why hasn't Sony developed more stuff for it?

Yeah, i saw them and i was blown away. Specially with the sword fight and the bow

I'm not talking about that, I'm talking about the existing PS Eye camera that's out now. I never knew it could do so much, I thought it was much more archaic than that.

I think headtracking/body tracking in combination with the very accurate wonder wands hold a lot of potential. For example at some point being able to play a Fight Night Round X boxing game, like ducking blows and delivering accurate punches.

Love to see where this is moving.

Sorry dude, but people saying NATAL is JUST a little beefer eye toy are smoking crack!

OMG, just watched it thats insane, why didnt they rerlease games like this (looking at my eyetoy)

Great Find man

The Natal project looks very interesting, but from what we saw it still wasn't accurate and there's some obvious response delay in cases at this point. Voice recognition sounds promising as well, but to include and develop all possible commands and responses would be an immense job (to try to approach realism as suggested by Microsoft). I hope it will work universally, so switching random players with very different voices/articulation the software still recognizes everything accurately. And what about other languages besides English, do they intend to support Japanese, Dutch, French, Spanish, etc?

Would be nice to know an anticipated release date...

The gesture recognition and other things demoed were IMO very similar to Eyetoy feats though.

After seeing project NATAL this is just meh. It seems a little inaccurate, could be because it's not in 3D. I also thought the games shown looked lame. and my favorite argument (the one some PS3 fanboys used against NATAL) Who want's to get all sweaty jumping around like a fool. I dunno, the fact that this is currently working and on the market is cool though, it just goes to show how far the gaming industry is advancing.

Watch the videos. Natal is superior to The Eye, no doubt, but if you add another camera and a couple of tweaks to The Eye, it'll do exactly as the Natal, you're insance if you don't think Natal is just "The Eye 2", but that's not a bad thing, it's actually a GOOD thing.

 The Eye is what? 3 years old? Of course Natal is more advanced and more impressive, though it didn't look nowhere near as accurate as WM+ or especially the PS Waggle. And I think you'd look stupid jumping around in front of a TV whether it's the Natal, The PS Eye, the WM+, The PS Waggle or whatever reason. The major potential I see for these kinda applications is for stuff like RTS games, can you imagine Starcraft 2 on your PS3 or 360? Drools

Point of this thread was to just show how much The Eye can do, I really never knew it could do this much.

3-D vice 2-D...a way to handle voice recognition is to have some scripted topics, vice scripted responses...so, if you want to ask..."do you like my penis" the system can have key words to focus on.  That's fairly simple.  WRT to langauge, it seems to be a matter of selecting a few, and going with that, just like it is now in games...take for example Mass Effect, with all the selectable dialogue choices?