Moments ago at E3, Microsoft showed off it’s upcoming motion sensing system. Project Natal – that’s codename – will work with every 360 when it launches and will be available on all the new systems. It has full body motion control by tracking 3D movement. Plus it recognizes voices, and totally immerses the players into the game. You can use your own gear like a skate board and such. Basically it kicks the Wii’s ass in the interactive gaming field. That is if the system works as well as the Microsoft video shows.

We have two questions: when and for how much?

Update: It seems that the pricing might have been revealed early by Brier Dudley at The Seattle Times. His post, which went up 45 minutes before the press conference, states that the price will be around $200. Who knows where the number came from so we’re labeling this one as a rumor for now.

Update 2: Added a quick video demo after the jump. More to come.

Update 3: The official video is finally online. Enjoy it after the break.