Rumors about a motion sensing device for the Xbox 360 targeted at the same casual gaming audience enthralled with Nintendo's Wii have been around for some time, with Microsoft taking their usual "no comment on rumor and speculation" stance. Yet another report has hit the web in recent days, this time from the Wall Street Journal who claims it has received confirmation from people familiar with the matter.

Instead of requiring a hand-held controller to register a player's movements, however, Microsoft is purportedly working on a video camera for its Xbox 360 console that will allow players to control games with the movement of their bodies. This will differ from Sony's PlayStation Eye and Microsoft's Xbox Live Vision cameras in that it uses 3D technology to also detect depth, literally adding a whole new dimension to games and providing much greater accuracy than before.

Furthermore, WSJ notes that camera is believed to be based on the Z-Cam technology that Microsoft recently acquired when it took over Israeli start-up 3DV Systems in February. Microsoft would be likely to show off such a device during E3 in the first week of June, although an actual release is not expected until 2010.