I was very impressed by the Wii desktop VR demonstration that was posted on the internet recently, and it appears as if someone has figured out a way to run something very similiar on the PS3 using the Playstation eye...
Once again, very inventive. I don't see why game developers don't use this type of technology in their games. It would be a great addition to a first person shooter!
PS3 Desktop VR
I must learn how to imbed video's one of these days - I know you can do it in blogger, but I've failed each time I try... That just goes to show my computer skills :)