Last week, Sony showed off head tracking software for the PlayStation 3 using just the PS Eye camera (via MTV Multiplayer). That's right, no crazy hardware configurations devised by third parties (e.g. Johnny Lee, Electronic Arts), just software that identifies your head and its movement.
A representative said the head tracking software has not been announced for any titles, but we'd love to see it show up soon for pretty much any genre of game. Video embedded after the break. (Note: It doesn't work for users with Canada, Japan or U.K. IPs.) While you're at it, (re)watch Lee's video to get a better idea of the potential of head tracking software (also embedded after the break).