Mind-controlled video games are becoming a reality. NeuroSky Inc., maker of “wearable” consumer bio-sensors for various applications, announced today that it would unveil a brainwave-controlled video game at the Tokyo Game Show 2008 in Makuhari, Japan on October 9th and 10th. The game is being jointly developed with Square Enix, creators of the popular Final Fantasy series.

The game will initially operate on Windows PC machines in conjunction with a NeuroSky commercial headset called the MindSet. The MindSet is capable of interfacing with various gaming platforms including PC, console, and mobile. The MindSet is fashioned like a regular headset, except for a single electrode which contacts the wearer’s forehead and reads brainwave information, or EEG data. The headset will sense relaxation or concentration states of the player, allowing them to perform various actions in the game as a result.

Ryutaro Ichimura, Producer at Square Enix said, “At Square Enix, we are actively involved in developing a variety of gaming interfaces. I am thrilled to have this opportunity to work with NeuroSky, and apply their advanced sensor technology in this brain-wave controlled game demonstration. Although the main purpose of the demo is to test the results of our short development period, I hope it also unlocks new potentials in gaming.”

The CEO of NeuroSky, Stanley Yang, believes that brainwave-reading technology (EEG) will rapidly emerge in the video game industry as an alternative to traditional controllers.

Nintendo and Wii fanboys beware.