The video, submitted by Design I/O, shows impressive tracking accuracy from Kinect (right down to the shape and position of the hand), and yet another interesting application that you won't find in the camera's batch of launch games. Designer Theo Watson noted in the video's comments: "it allows for really easy person detection and a cleaner silhouette. with a regular IR camera we would have to worry about the color of the clothes people are wearing, or do backlighting with IR lamps. The Kinect also gives us the z distance of each joint - which means we could in theory have the puppet turn to face the viewer :)"
And you'd be staring into the future of gaming, folks. Imagine playing UFO Catcher as the claw and winning every time!