I worked on a number of camera-based games for Playstation during my ten years at Sony.
This video demonstrate the book tracker my team developed. The player holds a real cardboard book in their hands while the PlayStation camera looks at them. On the TV, the book is transformed into a magic spell book. There are a number of systems working together to pull off the illusion including: Book tracking, hand segmentation, PS Move controller tracking and motion detection. Note that the PSEye camera is a fairly standard web camera and doesn’t have a depth sensor.
In this link you can see an overview presentation of how the book tracker part worked. The photos in the presentation show Tom Lucas-Woodley, one of the senior engineers who poured his soul into this to get it working:
book-tracking_reduced.pdf
You can see adverts for the actual products the technology went into here:
Diarmid Campbell 