Rumors about Microsoft’s impending attack on Nintendo have popped up here and there, but the WSJ has gone on record by saying that MS is, in fact, working on a 3D camera system that resembles the Wii’s motion system.
But the Xbox 360 version won’t require you to flail around like a bafoon with a stick in hand. The purported 3D camera will track your entire body, so you won’t have any controllers in hand while playing.
It could be announced as early as E3 in June, but the WSJ’s sources say it won’t come out until next year.