Microsoft is heavily rumored to not only be working on a motion control-enabled camera accessory for the Xbox 360, but to reveal said add-on at this year's E3. That rumor has started to gain traction.
The Wall Street Journal writes today that, yes, Microsoft is prepping the oft-rumored, spy-photographed camera add-on that was allegedly revealed last month. The Journal's report says that the new hardware will "allow players to control games with the movement of their bodies," citing "people familiar with the matter."
Motion detection camera experts 3DV Systems' is suspected of being the supplier of said technology, which can track both full body movements, as well as smaller actions like pinching and grabbing. Microsoft was reported to have been in talks to buy 3DV earlier this year.
The Journal's unnamed source indicates that, while we may see the new tech shown at this year's E3, it might not be released until next year.