Again, according to this rumor (by the time I'm repeating it to you, it's fourth-hand) the controller will be sold separately and will be compatible with all versions of the 360 console. Reading the story, it sounds like you would get the controller plus an even larger list of mini-games if you buy it separately.

The new products are set to drop Holiday 2008, says Xbox 360 Fanboy. We shall see.

Rumor: New $199 360 SKU With Motion Controller [Xbox 360 Fanboy]

Well, the stock answer is that we don't comment on rumours and speculation. But I will say, look, we have a lot of reasearch and development going on all over the place, in Live and in Harware and we have a ton of success in the accessory business - and that's probably a story that doesn't get told enough. From a commercial perspective and also in terms of critical acclaim.

We're going to continue to look at new ways we can introduce different things - the third parties are doing this as well with the music controllers. So there's opportunities for us there too. We're an R and D company at heart.

...But what's interesting is that you have a lot of third parties that are trying to rush to the Wii phenomenon, but if you look at the data, the vast majority of software that has sold on Wii has come from Nintendo. So it's not turned out to be a great third party eco-system.

So it could work if you had something that had a great third party eco-system. Having said that, our unique perspective is going to be online oriented for better or worse. In the same way that Sony is Blu-ray and Nintendo is the motion-control, our thing is online. And each of these has strengths and weaknesses in different markets of the world. whatever we do has to take advantage of our unique capabilities.

...I agree with you. But I've never heard of a motion sensing controller... I don't know what you are talking about...

Worst. Denial. Ever.
Shane Kim Interview [CVG]

Looks like some serious Chitty-Chitty Bang-Bang action in the first shot. Another after the jump. Click on them for full size.

First Banjo 3 Screenshots [British Gaming Blog]

Gyration, however, unequivocally denied yesterday that it has any such project in development with Microsoft. However, talking to Rare, Microsoft and a company called Motus revealed more items of interest regarding the "Newton" — the picture seen above is Motus' "Darwin" controller.

"There's absolutely no truth to the rumors, and I have no idea where they're coming from," said a genuinely perplexed-sounding Zac Rivera, the PR rep for Movea Inc., the company that purchased Gyration in January 2008. He added, "Gyration is working on some game-related projects, but it won't be announced until later this year, and it is not related to the Xbox 360."

However, when it comes to motion controls, Gyration is not the only game in town. Boston-based Motus also develops motion controller tech for games, and, looking into the company for possible information on the "Newton," we learned that it has an existing product on the market already called the "Darwin."

Coincidence?

Motus calls its Darwin controller "the evolution of the Wii" (Darwin, evolution, SEE WHAT THEY DID THERE?), but Motus chairman Satayan Mahajan says he's not trying to trash-talk: "We really admire the Wii; we think it's a great device. It's done a lot for us... in bringing motion sensing out to the rest of the world. Darwin offers the next generation of Wii."

Mahajan says he's never heard of a project codenamed "Newton," but while Gyration offered an outright denial of a relationship with Microsoft, Mahajan refused to comment on what companies are currently using its technology. "There are publishers in studios using it right now, but we have not announced our relationships."

So does Motus' Darwin aim to compete with existing motion controls, or add that kind of technology to products that don't currently have it?

"That's a tough question," Mahajan says. "We're doing what we're doing; we've created motion-based technology that offers wonderful control. Competition is kind of a natural part of doing business. Our goal is not to compete, but to do what we do and do it very well. We're not knocking down the Wii; we respect it and we admire it."

So where is Darwin aiming? "Darwin will work on console as well as PC. One [console] has very good motion controls... the PlayStation's Sixaxis struggled a little bit, and I think the other consoles, as well as PC, are looking for full motion-based solutions too," said Mahajan. "If you look at the rumor mill... it looks like Microsoft is coming up with something, and we have something... So motion-based control is needed on the other consoles, as well as PC."

The other consoles? You mean, other than PC, PlayStation and the one with "very good motion controls"? Isn't that just one console?

Motus has a previous relationship with Microsoft, too. Its iClub technology encompasses motion analysis and capture, and they've been at that for nearly five years now. The iClub technology was used in Microsoft's Links golf title in 2005. Is Motus continuing to work together with Microsoft?

"I couldn't tell you that," Mahajan said. "I would love to tell you that, but I can't."

One point Mahajan made is that when publishers release Wii titles where motion plays a key role - say, a Harry Potter - they lose "two thirds of their revenue" because without the motion controls that make magical wand-waving what it is, those titles don't sell as well on Xbox 360 and PS3.

We talked to Aaron Greenberg, director of product management for Xbox 360 and Xbox Live to see how concerned Microsoft is about losing the attention of that waggle-loving, more casual market.

"Nintendo's success is great for us," says Greenberg. "It's helped broaden the industry, and we feel like we're a part of that effort. I think that Xbox 360 is a great compliment to that experience; our belief is we offer an experience that has a broad appeal from teens to adults and even young adults... what we're seeing right now, coming out of last holiday, is that the fastest-growing segment for us is teenagers and teenage girls. With Guitar Hero, Rock Band, Dance Dance Revolution... the music genre has really exploded and those titles are selling best on Xbox 360."

In Greenberg's view, the all-inclusive motion-based Wii experience is a gateway drug for young consumers who eventually "graduate" to the Xbox 360. But the Wii has the broadest install base among current consoles — how much of that does Greenberg feel is due to the Wii's controls? "Motion control in particular... I wouldn't say that has been the differentiator. It helped contribute to the Wii's success but it created a backlash for Sony. It's not necessarily about motion or no motion, but it's about the implementation of that experience."

He continues, "People buy your console to be entertained, and they buy it for an entertaining gaming experience. By having motion, that doesn't make the gaming experience any better. There's certain types you've seen where it's definitely been unique... and some where you don't want a motion control, like when playing GTA or Madden or a racing game or an RPG. Wii Sports worked well, but in this industry, people want a lot more variety beyond the whack-a-mole type of experience that you get with that."

Does that mean Microsoft has plans to add motion controls only for certain kinds of games? "We haven't announced anything like that," he said. "We really don't comment on those types of speculative rumors."

But does the company think it's necessary to take a cue from Wii and loop in more of the casual audience? Not necessarily, says Greenberg, implying the hardcore gamer is still the platform's main priority. "The fact is, if you look at the top selling and best-rated games in the industry, you'll find that majority of those titles are on Xbox 360," he says. "Four genres drive 80 percent of sales. We've got the top-rated games and the most exclusives in those genres. If [gamers] are only going to buy one system, we feel like we offer the complete experience."

Leaked documents on a possible upcoming Rare title called The Fast And The Furriest, featuring surly squirrel Conker, suggested that the game might include a Wii-like motion control scheme. But an anonymous source inside Rare says that game is just a rumor, noting, "A new Conker game doesn't really factor that high up on our agenda."

Apparently, says the source, lead designer and Conker creator Chris Seavor is sick to death of the character and the franchise, and prefers to back-burner any title featuring the Rare mainstay. "We really don't want to run the risk of being pigeonholed as a casual games developer," adds the source. However, Rare belongs to Microsoft now. "They own us outright, but they still respect our creative integrity," stresses the source.

Still, our source could neither confirm nor deny rumors that the game was once or is currently in development, and nor would the source comment on the waggle rumors. "Many things are possible, but that's not to say that any of them could be true," the source says.

In fact, adds the source, "All this speculation couldn't have come at a worse time for us." Why? Rare would prefer fans focus not on rumors, but on the very true impending launch of Banjo 3, about which the whole team is enormously excited. "Don't expect a traditional platformer," promises the source, "We've gone away and invented a game mechanic that's never been in any game before."

So Microsoft may feign disinterest in the women, kiddos and seniors who've caught the Wii-waggle bug, Rare may be sick of Conker and prefer not to be a "casual developer," and Gyration swears it's not involved. But Darwin developer Motus is keeping the truth close to its chest, so it's unlikely the rumors about the "Newton" will die down anytime soon.

Now 8bitjoystick, a blog known for close affiliation with somebody at Microsoft, is confirming that the peripheral indeed exists under the codename "Newton," and that the public could see the device by this winter.

Their details tell of a device using licensed Gyration patents—the same firm Nintendo scored much of their tech—that utilizes an LED sensor bar, accelerometers and gyroscope, as well as separate 2-way wireless communication (just like the Wiimote uses Bluetooth, the 36mote would probably use Microsoft's proprietary frequency).

8bitjoystick speculates that the Xbox Play & Charge battery pack will fit in the controller, and will dictate much of its design (assuring curved edges and a dual-AA width).

My thought on the matter is why wouldn't Microsoft make such a device? So what if it flops? So what if Microsoft loses a few licensing dollars? A 360mote would allow Microsoft to compete with not just Sony, but Nintendo as well.

Xbox 360 "Newton" Motion Sensing Controller Confirmed [8bitjoystick]