Rock-Paper-Scissors and Robot Hand

I had retweeted @vkhosla's link of a robot hand playing Rock-Paper-Scissors and beating you EVERY SINGLE TIME!. Here is the link and video. I first thought that it would be using some elaborate learning algorithm and has tons of historical data to train.
Nope! it cheats, meaning, its "high speed vision system" can detect your hand motion in matter of milliseconds and act accordingly. Neato! Did I say the video is supercool? Check it out!
I was talking to my colleague about a possible Markov Chain learning algorithm for playing Rock-Paper-Scissors. The model looked quite intuitive to me with three states: R, P and C denoting last three moves of your opponents, with transition probabilities computed using frequency counting. A little googling showed me that this is a fairly well thought of problem and many people have developed algorithms --- some simple, some complex --- for this problem. For example, here is a link to University of Waterloo RPS challenge .
Wow, you learn something new everyday!