This is funny in how trivial it was.
Then again, none of this stuff is as difficult as it used to be.
Wii controller? - Variant bluetooth/HID device. Getting it connected to a PC is trivial, but the data it returns doesn't comply with generic standards, a bit of experimenting was nessesary to get it usable.
Playstation 3 and Xbox controllers both seem to be USB and/or bluetooth. (Xbox controller doesn't even count as a hack, since official windows drivers were always available.)
The Playstation eye? - USB webcam, but it required writing new drivers. That's no different to any other webcam really.
Playstation move - I haven't seen hacks for it yet, but it seems the same old usb/bluetooth thing again.
Kinect - Any guesses here? Probably a USB device, and as a result, it's little wonder it was hacked so quickly.
I mean, I remember getting an N64 controller working with a PC...
That required a custom driver AND a specialised bit of electronics that converted the high speed custom serial signal to a standard PC parallel port...
And seriously, what's microsoft going to do exactly?
Pretty much every gaming device ever has had this kind of hacking done to it, and nobody ever seems to care.
Is microsoft really so desperate that they'd want to be the first major exception?
Look at the video. Look at the output the kinect hardware is producing...
An RGB video feed, and a depth map...
Seriously? That's worth being total assholes about?
All the impressive stuff is down to the image recognition software, not the hardware itself.