manythings said:
As cool as that looks I can't see it integrating into gaming. It's natural to move my head to get a better look but the in-game head is insubstantial so I think it would be counter intuitive to direct a limb that I can't feel... if that makes any sense.
Is it intuitive to step on arrows in DDR, or to use any of the music game peripherals out there? No, but the 'fun factor' allows these mechanics to persist and become profitable.
Using head tracking to give fake 3D without a special television is absolutely something reasonable for a game to do, especially if the mechanics are designed with the principle in mind. I don't think you'd see this in a twitch shooter like CoD or Halo, but it would almost certainly be effective and fun in puzzle-based adventure games and horror titles like Silent Hill.