My previous post on Microsoft's 3D system gaming system 'Natal' questioned the 3D system's latency. In this fresh real-world demo on the Jimmy Fallon TV show, Kudo specifically aimed to demonstrate the 'low latency' of the system. I'm not sure if the red jumpsuits were related to demoing the system, but the system seemed very robust, and responsive enough for fun gaming. I think Microsoft has a winner here.
UPDATE: Via Engadget Apparently the red "suits were just for fun"
UPDATE 2: Video got pulled down, sadly. I'm trying to find a replacement to embed.