Natal. Think Eye Toy, but much more realistic and can match your movements exactly. You can, in a skateboard game, scan your own skateboard, front and back, and ride it. No board, no controller. Think of playing a game show video game. You press the imaginary buzzer, and it rings. You say the answer and it recognizes your voice.
Then, there was Miloh. Miloh is a huge step forward in technology period. Miloh is a virtual reality boy that can recognize your voice and tell who you are. He can notice your emotions and convey his own. What the lady showing Miloh off to did was she first told him that she was nervous, and Miloh said "You? Nervous?", then they did a small conversation, and the lady asked if Miloh wanted to get beat in a game again... provided his schoolwork was complete. Miloh hung his head and walked away a short distance, and the lady noticed that he was worried about something. She offered to help him with his schoolwork, in which he had to draw a fish. They went swimming together (using the tech of Natal, the lady could move her arms as if she were really underwater), then they came back out of the water and then Miloh was to draw a fish he had seen. The lady was like "It shouldn't be too hard to draw a fish." Miloh says "You may think that just because it's a fish, it wouldn't be hard, but it is." So the lady took a piece of paper, drew a fish, lifted it to Miloh (Natal scanned it instantly). Miloh reached up and grabbed the paper and admired the drawing.
So, yeah, Microsoft wins.
