The statement that the projector "plays" motion reactive games seems misleading, but for a typical consumer audience I can understand the simplification.
Meg, out of curiousity, other than not needing a stand-alone computer and video input, how does your product differ from Mandala, which was introduced by Very Vivid back in 1988, for the Amiga? It could use any video source (usually a projector aimed at a wall, but most any video output device would suffice) along with a video input from a camera to allow interacting with on screen content, and was quite popular with museums and other entities for setting up interactive displays in the early '90s, prior to Commodore's demise. Do you have anyone working on your team that has ever dealt with a Mandala, or even old enough to remember one?
At a hardware engineering level, has more been done than reducing part count, in effect? The Mandala was purely 2D, for example, having only the ability to determine motion on an X/Y basis parallel to the video display. Have you added another axis since you are supporting the 360 Kinect, perhaps, or could you consider that for your next generation? Additionally, would the use of 1080p or higher resolution video cameras make supporting resolutions higher than 1024x768 feasible in the future, or give more precise movement tracking? What is the granularity of movement tracking currently?
On a software level, how easy is it describe interactive objects and the interactions that can be performed along with the results? What would it take for Minecraft, for example, to be ported so that no controller was needed, just a lot of movement (my nephew REALLY needs some exercise!)? Or is it only really suited for new applications built from the ground up using your Po-Motion tools?