Why is my facetime camera is not being recognized?

My facetime camera is not recognized by my Mac.

Initially I thought that it was a software problem. I tried several things that I had found in forums, such as resetting the SMC, PRAM, log in with another user etc, but the problem is still there.

I have concluded that it is probably a hardware issue.

Especially after testing my camera today using Photobooth. I noticed that there were interruptions on the image. Also by moving the screen back and forth, I noticed that the image was either getting better, or the signal was lost completely and I had the "There is no camera connected" sign.

So I am looking for a guid to replace my camera, or to check the connections of the cable and the USB controller.