The Project Natal is now called the Kinect. About a dozen or so games will be available at launch. Some that have been announced or leaked so far are;
Kinectimals features over 20 different virtual pets, including lions, tigers, and cheetahs, to play with or raise.
Joyride a controller-free racing game which was shown last e3 just as a avatar racer game that disappeared from the xbox site about a month ago.
Kinect Sports will offer sport games to play: "boxing, bowling, beach volleyball, track and field, soccer and table tennis." For each one, you will make motions to play the games.
Kinect Adventures has a river raft and obstacle course to navigate.
Dance Central by MTV Games.
Star Wars game that will feature controllerless lightsaber dueling and motion-activated Force powers.
A new video chat program where gamers will be able to participate in face-to-face communication and even share photos(4 people at once where the vision was only 1 on 1). The program is entirely navigated through gestures.
Yoga/Tai Chi Game uses infrared and joint detection software. From Engadget "Positions were "checked" by points on the joint -- making it certainly harder to fake the moves on Wii Fit -- and it seemed to have a tai chi element to it. Your avatar glowed a more intense red based on your three-dimensional approximation -- bright red for hands stretched forward, for example."
Soccer GameSome pics of the final hardware;

