3DV Systems, an Israel based technology announced the ZCam, a low cost 3D PC camera that senses depth in real-time.

"ZCam enables gamers, in a way never before possible, to interact intuitively and naturally with games," Zvika Klier, CEO, 3DV Systems, said. "We invite content developers to join us in creating a new innovative experience, and are very excited by the reaction of the developer community so far."
The ZCam offers real-time depth imaging at 60 frames per second, eliminating any perceived latency. The low CPU consumption of the unit means that gamers will not drain their systems of processing power. ZCam boasts a high resolution and since the camera works independent of lighting conditions, it will work flawlessly in any room, night or day.
ZCam comes with an easy-to-use Software Development Kit.
Via the 3DV Systems site.

Since the Wii came out gesture input in game play has become as normal as using a gamepad. Its actually quite amazing if you think about how things have been before.