For those of us old enough to remember the 90's, Duck hunt was the first real interactive game, I think most of us had played. (There's nothing like shooting down pixels)
After that, it was a mix of arcade games and Dance Dance Revolution (DDR, remember guys, it used to be cool, now it's old news.)
Now, we've gotten to Nintendo Wii, Xbox Kinetic, Playstation motion, and new systems have their version of interactive game play as an additional hardware attachment for the foreseeable future. .
I don't know how much more they could go, unless they can construct whole environment with interactivity through your personal movements, then it would just be a replica of Star Treks Holodecks, without all the moral dilemmas and such.