The prototype gaming system monitors a child's stress levels using a wristband sensor and rewards them for controlling their stress levels, for example by giving them in-game power-ups.
Developed by We Are What We Do, a not-for-profit technology company in UK, the system will encourage better self-control and emotional resilience among children suffering from stress, and could reduce mental health problems in young people more generally.
It is one of ten finalists in a technology competition run by Nesta, a UK-based innovation charity, and Google, 'The Times' reported.
Finalists in the competition are awarded 200,000 pounds each to develop projects and a further three could be given an additional 500,000 pounds.
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