What was the industry again that is the most likely to adopt new technologies? Yes, you are right...
Tech48 uses a webcam though and it looks a bit more stiff (har har har) than those impressive head tracking videos that use a wii remote and infra red light by Jonny Lee. The video explains how it works but basically the webcam recognizes the player's face its position and rotates the camera based on that. Looks like it does not zoom in or out depending on how close the player is.
(Do turn down your speakers before watching the video, the girl who is presenting it has a very over excited high pitched nauseating voice)
It looks like it could easily be implemented in other games that let you control the camera independently from the character (third person perspective based games).
Demo: http://teatime.ne.jp/infor/tech48/page_01.htm (since this is a japanese eroge (aka porn) don't download it if you are offended by such material)
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