With the biggest conference for the video game industry E3 2010 concluding last week, interest in the video game industry is high as both gamers and investors look towards the crucial second half of the year. Beyond the standard racing and war games as well as the umpteenth iteration of Donkey Kong, gamers got a glimpse of two new innovations from Microsoft (MSFT) and Sony (SNE) that take the concept of Nintendo’s (NTDOY.PK) innovative Wii controllers or Wiimote to the next level by allowing parts of your body to become the controller. We covered Microsoft’s Kinect (formerly known as Project Natal) a few months ago in an article titled Project Natal: Revolutionary Technology For an Industry in Distress. Kinect, which is scheduled for launch on November 4, 2010 is already the second best seller on Amazon’s video game best sellers list. Attempting to describe Kinect in words would not do the technology much justice and I will let the following video speak for itself. (If you are reading this by email and not directly from the InsideArbitrage blog, click here)