Would like to note that another site after E3 talked about the camera, so this info may be legit.
Even the product pages say the same thing...
I've wanted this camera since day 1. I do not want to leave any feature or potential for game play from my PS4 has un-earthed. With regard to the camera, I think Sony has taken the strategy of under promising and over delivering. One of the best yet least talked about features is the ability broadcast yourself via the PS4 Camera while broadcasting on Playstation live. And now it sounds like they are saying that this will also be incorporated into the video when you upload to twitch/Ustream. The other thing that really impressed me was Playroom. At first glance it may not seem all that impressive, but if you watch it carefully, there are some really sophisticated things taking place. Notice how the robot in the game can find you in 3D space and actually fly BEHIND you. Also notice in the weird looking pong game how the camera is able to cleanly remove you from your room and place you in the games own 3D environment. I haven't event seen any indication that the kinect can do that!
At about the 50 second mark you will notice waht looks like a photo avatar but what is actually a LIVE STREAM of the person actually playing the game!
If this is found to be true, what will be left for MS XB1 to say it has that the PS4 doesn't?
Wow, If the Eye can do everything the Kinnect can do what's left for XB1?
The Eye Is less expensive and it's optional.
Another thing MS tried to differentiate between the consoles that was destroyed.
MS has said their (cloud) LOL is going to make their games better.
OK PS4 will utilize cloud features also, it's just Sony isn't trying to pull the wool over consumers eyes it's limited by so many variables.
The Truth about the "Cloud" it's a gimmick, a wonderful sounding word that's complete BS.
By the way the PS4 has Better more powerful hardware under the hood, does all the same things the competitor does, $100 less.