Skin might be more due to the limits of the lighting in the game itself. Looking at the side by side comparisons they did at 1:50, it's very, very well done.
This is a bit of a tangent, but is anyone else wondering how this technology could be applied in other areas? I could see it being used to treat people with Aspergers; a few big traits of people on the autistic spectrum are difficulty recognizing things like nonverbal language and facial expressions. Interacting with a system like this would help them improve their skills, especially if they're leery of doing it with another person (although that would be the goal in the end).
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Godzilla vs. Gamera (1994)
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