http://online.wsj.com/article/SB1000...091339254.html

The gadgets translate brain waves into digital information and beam it wirelessly to computers or other devices.

So far the headsets are confined to mostly digital interfaces—videogames and movies whose plots can be altered with the mind—although in some cases real-world objects have been used, like a pair of catlike ears that move depending on a person's mood. The technology, still in its infancy, has the potential to not only entertain but to possibly improve education and strengthen mental health, some doctors say.

Behind much of the technology is San Jose-based NeuroSky Inc., which first made a splash in 2009 when toy maker Uncle Milton Inc. used its headset for the Star Wars Force Trainer toy that let youngsters suspend a ball inside a tube. As the child concentrated, a fan would spin and blow the ping-pong ball upward.

The novelty toy was more than a "gee-whiz" moment. It was the first time consumers could see brain waves translated into specific commands in the physical world. And it didn't make use of skull implants, which for years have enabled patients to control prosthetic limbs and wheelchairs.

Now, about 1,700 software developers are working with NeuroSky's technology, with the majority of them making mind-controlled computer games for the company's $129 MindWave Mobile headset, NeuroSky Chief Executive Stanley Yang. He said the company is nearing profitability but declined to provide revenue numbers.