Report: Microsoft working on motion-controlled camera

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Report: Microsoft taking on Wii with motion-controlled camera - plugged in - Yahoo! Games

Rumors of Microsoft crafting a Wii-like control device have been bubbling for some time now, but a new article takes such talk from a simmer to a boil.

Citing "people familiar with the matter," The Wall Street Journal reports that Microsoft is indeed developing a new camera accessory for the Xbox 360 that will "allow players to control games with the movement of their bodies." In other words, gamers won't need to hold a controller in their hands to play.

But while a similar gadget already exists in the form of Sony's EyeToy peripheral, the Microsoft camera will purportedly incorporate 3D technology to give users "more accurate control over games than earlier game cameras."

To back up that claim, the report further states that the tech powering the camera comes from 3DV Systems, an Israeli start-up that Microsoft acquired earlier this year. 3DV made some waves a few years ago with its 3D Z-Cam technology and holds related patents.

The Journal indicates that the device could be publicly unveiled as early as next month's E3 gaming convention, setting up a potential showdown with console competitor Sony, who is also rumored to be getting into the motion-control game.