Well...at least we know what selling point next-Gen consoles will have. Prior to seeing quality immersion (which this demo is forerunner for), I really couldn't figure out why anyone would want the next Xbox or PS4.
Once they figure out clear signals for controls and cut lag to 1/100th a second, gaming will become a lot more fun than it used to be: especially if they can get it to detect where your hand points well enough to play CoD.