Gamasutra is reporting that Microsoft plans on including a free motion-based game with the Xbox Live Vision camera. The game, TotemBall, sounds like a platform game from the information provided in the article;
"TotemBall is controlled almost entirely through gestures; that is, 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. Gesture-based gameplay is not foreign to Freeverse, who previously developed ToySight for the Macintosh, compatible with Apple's iSight camera." -Gamasutra
While nothing has been confirmed by Microsoft, the Live Vision camera is expected to ship on September 19th with a retail price of $39.99.
Check out the Gamasutra article at this link and shudder at thought of how this thing is going to be abused by the masses.