The actual latency is a combination of receiving the sensor data over USB, processing it to find the ball location, and then rendering new frames in software. Figure a few dozen milliseconds for all of that, then consider how many milliseconds a ball takes to move up the playfield due to a hard flip.
The current P3 ball-tracking software (which is built into the software framework, btw - game developers don't need to worry about writing that) doesn't do any predictive optimizations, but there are a bunch of things we can (and will) do to decrease perceived latency. It's pretty good now, and it'l get even better.
- Gerry
http://www.multimorphic.com