sony is not catching up. they can try and try, but they will not catch up. if by any chance, they catch up to wii sales, nintendo will have another console out, with another ingenious gimmick and will have sold millions by the time sony is playing catchup.
also, i've heard it has trouble tracking fast movements quickly.
kinect can't be terrible if it works, even with a little lag... but i doubt there will ever be any hardcore games for it... i forsee dancing and boxing games for years to come