1. A system for measuring movement of a target for use by a video game or virtual interactive computer application comprising: a camera having a light receiving lens, an image sensor for converting the light received through the light receiving lens to two-dimensional image data, and a gate to selectively control the image sensor; at least one illumination source associated with the camera, which emits a divergent LED beam directed towards a target of interest within a limited three dimensional space; and processing electronics having a processor coupled to the image sensor that generates a digital representation of the target of interest and gating circuitry coupled to the illumination source and to the gate of the camera, the processor further configured to: control the gating circuitry so as to pulse the divergent LED beam to illuminate the target of interest and to correspondingly gate the camera by controlling the gate to synchronize the light collected by the image sensor of the camera with the pulsed divergent LED beam to produce a series of two dimensional image frames; measure the time of flight of the light emitted by the illumination source to measure the distance to the target of interest; read the two-dimensional image data from the image sensor of the camera; and combine the time of flight measurement information with the two-dimensional image data obtained by the image sensor of the camera to generate a three dimensional information with regard to the target of interest.