The system, formerly known as Project Natal, is Microsoft's new motion controller.
While it shows a lot of promise, nothing Microsoft demonstrated Sunday night was a great surprise. Still, it's clear where the company is going with Kinect: Nintendo's Wii console, Wii Fit, Wii Sports, and Balance Board hardware are in Microsoft's sights.
Another view of the Kinect hardware, which can sense a person's body motion and convert that movement into action on the screen.
The hardware is based on technology originally developed by the Israeli company 3DV called the ZCam. Microsoft later bought 3DV.