Microsoft announces "Project Natal" motion controller for Xbox 360!

Yes, it's real. Now you'll be able to change a tire... virtually. At E3 today, Microsoft finally took the wraps off the that rumored motion controller we'd been hearing about. Apparently the small, black device -- codenamed "Natal" -- will allow for an astoundingly wide range of actions by utilizing a group of sensors (the box itself sits beneath your TV), and the accessory will be capable of juggling multiple users during a single session. The demo Microsoft showed off included a skateboarding game (replete with a young man "air" ollie-ing), and a family playing a racing game (the dad was changing a tire, the daughter driving).

The add-on will offer features such as auto sign-in for players to Xbox Live (based on complex facial recognition), and sports extremely detailed body tracking which will be able to follow the individual movements of separate limbs. During the press event, the company demoed a painting app, which lets you use your entire body to handle virtual painting supplies, allowing you to do things like throw buckets of paint onto a canvas. Another title was shown off which featured a woman interacting with a young boy on the screen -- one of the company's creepier demos in recent memory. Unfortunately for us, Microsoft says the device won't be released during 2009. We're working on snagging some face time (literally!) with a demo unit, so stay tuned... E3 is off to a wild start!

Video added after the break!