Just as the title says, how does they way the Playstation 2's EyeToy calculates where things are compare to how the 360's Kinect does it?
The PS2 EyeToy is essentially a QVGA (320x240) webcam, which is paired with image and gesture recognition software to create a device capable of detecting objects and simple movement.
Kinect is essentially a VGA webcam (640x480) paired with a VGA infrared sensor/emitter array. When paired with the proper software, this not only allows it to detect objects in 2D, but also depth and motion in 3D.
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Basically the ps2's eyetoy is rubbish, the kinect has a greater recognition and smoother gameplay, which is understandable seeing as the eyetoy was released in 2003