Today Xbox Kinect was launched. It's great !
With some of the projects we're working on we've had one for a little while now and I've had a chance to use it, all in the aspect of research you know.
I remember seeing a WII controller work for the first time (I worked in the gaming industry at the time and was still blown away) and Kinect takes things to a whole new level. I took my 8 and 6 year olds into the office recently to see what they thought and they loved it from the first minute, really intuitive.
The downside is the space you need. It's very much a standing up jumping around device not sitting there on the sofa. This is great for small boys but not their dads who have to keep up/find space for it/ probably buy a new TV because they'll want to use it the whole time.
We have some other soon to be launched hardware knocking about in the office and that could be just as impactful.