When I saw this at first, beore reading anything on it really, I thought it was real. VERY talented person whoever it is that made it. Some of the stuff in their is what i've been waiting to happen in the industry for the longest time. Such as the 'make games' part, which got me to thinking once more about how great it would be if a company actualy embraced homebrew efforts instead of trying to destroy them.
I can't see how the virtual reality part of the vid would work though, not as far as walking is concerned at least. In the video the person stepped forward and in the game it made the character move forward. This simply wouldn't work as people would walk into walls, and knock over various items while playing the game. Having to speak each command would suck as well.
Oh well, I had a moment of hope that the 'Nintendo Revolution' would actualy be revolutionary. Its gone now though.