The way things are going it should be ready by the PS5 http://news-info.wustl.edu/news/page/normal/7800.html
that would preclude idiots from playing games though, you realize. (not to mention that no one could play drunk or stoned)
This is actually a pretty old story. The main problem with this is that it requires implanting devices into your brain as I recall. For this to be a mass market technology for a gaming device, everything must be external. They can't do that. Plus every single game has different objects and such. It would be very complicated to control something with your motor functions as complex as a Xbox 360 controller or PS2 controller. So many different analog controls. Then just alot of button in general. It's not that you can think and do things, it's just like moving a part of your body, only that movement also triggers a switch.