At Microsoft's Gamefest event, it was revealed that the upcoming Xbox 360 camera would include a free game.
Gamasutra has broken the news that the Xbox Live Vision video camera will include a free game called TotemBall. Much like the PS2 Eye Toy device, the game tracks the player's movement through the camera which then affects the action on the screen. According to Gamasutra, "The game tracks a player's arm movements to control a rickety, wheeled totem pole tower around each level, collecting items and trying to reach the exit within a time limit."
The camera can also be used for video chat, Xbox Live games like Uno and facemapping in the upcoming World Series of Poker and Rainbow Six: Las Vegas games. Gamestop currently lists the camera ship date at September 19th for $39.99 US. No official announcements have been made at the time of this posting.