With the original Playstation 2, Sony hit upon great success with their EyeToy peripheral. The camera added extra features to various games, and played a central role in others. Sony is extending the camera system with the Playstation Eye for the Playstation 3 and making it play a bigger part in their portfolio. As a result the Playstation Eye features significant improvements across the board in terms of support and hardware functionality. Most notably, the Playstation Eye is required for Sony's Motion Controller the PlayStation Move.
Resolution has doubled to 640x480, recording frame rate has doubled to 60FPS, a faster framerate of 120FPS is also available but at a lowered resolution of 320x240. Other improvements include a zooming lens which has two modes, one for closeups and the other for viewing a person's body. Sony also claims that their new technology allows for better video capturing in low light situations.
Audio capture also sees a very large improvement as is obvious from viewing the product. A four microphone array provides positional sensing, voice tracking, and background noise canceling capability.
The camera comes bundled with EyeCreate software from Sony which lets you watch, edit, and remix captured video to make your own pictures and movies. However, captured audio and video is only editable inside of the EyeCreate software and it remains to be seen how the exporting process to play under the XMB will work.
Outside of the film creation functionality, the Playstation Eye will be used to enhance and interact with various games.