This was a project done in the fifth semester during my undergrad course in EE (and my very first take at image processing!).
A human vs. microcontroller game of rock-paper-scissors has been implemented. A webcam captures the player's hand gesture, then using image processing figures out whether its R/P/S. It communicates the player's gesture (via UART) to an ATMega64. The uC then takes its own random decision of R/P/S, and implements the game's algorithm, to display the results on an LCD module.
How the image is processed: The player wears a white glove with two black rings. Depending on the number of black objects, the gesture is interpreted (check out the image)