I was very impressed by the new video recognition system of XBox:
http://www.geekstir.com/project-natal-milo-xbox-360

This is very cool. I especially love the idea of this fighting game, since I am a Karateka myself. This would be funny training at home.

But most impressive is Project Milo, a virtual child (from Peter Molyneux):
http://www.youtube.com/watch?v=Wdkw7sQZPT0

This will probably not be a replacement of mouse and keybaord in shooters. But it can create new funny entertainment just like the Wii did.