Microsoft has finally confirmed that an Xbox 360 motion-capture gadget’s in the works. At the ongoing E3 games fair in Los Angeles, Microsoft announced Project Natal – its codename for a “revolutionary new way to play" that uses "no controller”. Xbox_360_Project_Natall_01 Microsoft's 'Natal': an Xbox 360 motion-capture gadget …
Sony already miles ahead in this area.
This is several years back. It's due out soon..