This is the Eye of Judgement CRAAAAW—you know, because it looks like a claw. This monstrosity of a device is actually a PS3 camera peripheral for the Eye of Judgement game. The game itself is somewhat odd. A three by three grid is placed on the table with this camera mounted beside it. Once cards are played the Eyetoy claw will capture it and summon the beast on the television screen. Essentially, it is a mediocre card game with animations on a screen. Check out the video on Kotaku for the full scoop here.
E306: Eye of Judgement Demo [Kotaku]