Banjo-Kazooie: Nuts & Bolts developer commentary video, Microsoft Game Studios creative director Ken Lobb drops the line, "So you basically grab with the wrench and then you twist the controller around and it'll move different things in the game." Twist, you say? Earlier, we catch Kazooie doing just that: twisting an Xbox 360 controller (recreated above; full video embedded after the break). So what do we make of all this?
Well, there's that nagging rumor of some Abracadabra action going on behind closed doors at Microsoft, with Rare allegedly being one of the first studios to waggle the magic wand before passing it up for Vision cam support in the upcoming XBLA title, The Fast & The Furriest. It's not much of a stretch to assume that if Microsoft is to unveil a motion controller (say, next week!), Banjo-Kazooie could be one of the first titles to support the new feature. Waggletech® isn't exactly cutting edge or expensive, so a hardware manufacturer can essentially tack on motion sensitivity at any point (to varying degrees of success).
One theory suggests that Microsoft could install motion control into preexisting gamepads with an add-on device; perhaps a modified battery pack that also plugs into the headset port. Bundle the gizmo with Banjo-Kazooie, and you've got yourself a tried and true practice. Case closed? Certainly not.
Update: Microsoft has this to say.