Sony's Shuhei Yoshida has detailed to Engadget how the new PlayStation 4 Eye will work.
The new PS Eye comes with a pair of 1,280 x 800 cameras, four microphones and an 85-degree field of view. The two lenses are designed to be used in a variety of ways, including triangulating 3D space, gesture recognition, body tracking, or in conjunction with accessories such as the Wonderbook or DualShock controller.
Describing how this could work, Yoshida says that, for example, one camera will concentrate on capturing the action and ensuring good picture quality, while the other is dedicated to motion tracking. The fact that Move is now incorporated into the controller will also allow the camera to track the DualShock and know where you're sitting in relation to the TV. Apparently you'll also be able to use the camera to take 3D pictures and video and store them on your TV.