Microsoft has recently announced Project Natal, which is an extension to your XBox that provides controller-free control! It's unbelievably cool - take a look. [Basically, you get a Wii-like experience but you don't need to hold any controllers!]
Even better is that Microsoft Research Cambridge has contributed to this project! For the past year, Jamie Shotton and his colleagues have been working hard upstairs on a "Top Secret Project" (most people in the lab didn't know what it was). It turns out it was the vision system at the heart of Natal. Way cool, Jamie.
Given the current climate of researchers being laid off, it's wonderful to see Microsoft demonstrating what having researchers can do for you.
PS: Here's the announcement at E3.