Motion precision seems to be the new craze in gaming this year. Notice that he constantly mentions they're blurring the line between the virtual world and the real world. This is the same company promoting the concept of purely thought controlled gaming. This demo is but a marketing decoy, until their real top secret tech is ready for debut.
What is going on behind the curtain we ask? They're working on nothing short of a complete BMI (brain machine interface)
whats my evidence? this patent:
Application number: 11/756,561
Publication number: US 2007/0282216 A1