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SOEmote mixes webcams w ingame avatar expressions
video and E3 interview at link
SOE is adding new facial recognition tech to EverQuest 2 that lets the game track your movement and facial expressions and replicate them on your avatar in real-time. Voice chat is also built into the feature so that your character will animate naturally while you talk.
We have a full demo video of the tech below, and the inside scoop on how it works and why the devs think MMO players will love it from EQ2′s Director of Development David Georgeson and the CEO of the company that developed the technology, Robert Gehorsam.