The theory of matchgates is of interest in various areas in physics and
computer science. Matchgates occur in e.g. the study of fermions and spin
chains, in the theory of holographic algorithms and in several recent works in
quantum computation. In this paper we completely characterize the class of
boolean functions computable by unitary two-qubit matchgate circuits with some
probability of success. We show that this class precisely coincides with that
of the linear threshold gates. The latter is a fundamental family which appears
in several fields, such as the study of neural networks. Using the above
characterization, we further show that the power of matchgate circuits is
surprisingly trivial in those cases where the computation is to succeed with
high probability. In particular, the only functions that are
matchgate-computable with success probability greater than 3/4 are functions
depending on only a single bit of the input