You mean like those motion capture cameras and controllers that sense movements? yea, those devices totally failed. It will all depend on accessibility.
Things like the WiiMote and the SixAxis controller are gradual improvements on physical interactivity. Things like the Kinect and the Playstation Eye and even as far back as things such as the Dreameye, Eyetoy and Virtual Boy all were (mostly, excluding the Dreameye and Virtual Boy) "successful" in terms of hardware, but failed miserably in the software department due to the large leap from the limited physical interaction required in most modern games. The same will come of the Oculus Rift. In fact, it already reminds me of the Virtual Boy. Now that was a humorous fiasco.
It will end up as a novelty, but the PC's limited attraction to casual players who buy into such novelties will prevent it from being a financial success, mark my words.
