The Playstation Move works with the current Playstation Eye to simulate a 3-D environment and help track the depth of the player. Officially, Sony has stated that the Playstation Move will support many games from casual to hardcore including Move Party, Little Big Planet, EyePet, Motion Fighters and SOCOM 4.
Attached to this post is the official trailer for the Playstation Move, which does a lot more to explain the controller’s capabilities than I ever could. Enjoy.