That's WoW played with Kinect . And watch the "Technical" bit later in the clip to see how the emulate all the keyboard buttons with movements.
And looking at what they did there with the movements and camera rotation [lean forward = move forward , lean backward = backward , use left hand to rotate camera ] , i see little reason why they can't do it with a FPS . They just need to figure out a way to emulate a "gun trigger" without having to wave your arms around. However in the case of WoW up there, they emulate the 1-9 keys by having you pointing your arms in a direction , like a clock [i.e. point up = 1 , left = 2 , right = 3 ] etc, which i think is a pretty good way to doing it.