Physical interaction design DH2400

What happens when you take Peter Molyneux (the designer of a really revolutionary game of the 00's called "Black and White"), AR technology, XBOX360's project Natal and mix them all together? Well, you end up with one of the most inspiring videos in HCI:

(highlights of the video are at 1:25, 1:45, 2:35, 3:17 and 4:01)