SEGA West boss Mike Hayes has said the company is already working on a Project Natal demo - and will be showing it off at E3.
It's not just Microsoft's motion control technology SEGA is interested in, either. "All credit to Microsoft and Sony, they've given us early development kits," Hayes told CVG.
"We asked our Japanese studio to create something for [Natal] which we'll show off at E3. They had a brilliant prototype up and running within six weeks. I mean a genuinely entertaining prototype you could just play."
So what kind of games is SEGA looking at producing with the new tech? "I think Natal and the Sony Motion Controller allow us to do things that are more about multi, party gaming. In a way, it's a move away potentially from the core. That's what we're actually getting good at."
According to Hayes, the future is games which are "repetitive fun - easy to pick up and pass around", like Mario & Sonic. "That's where we could either use old Sega IP or come up with new ideas," he added.
E3 will take place in Los Angeles from 15th - 17th June. We'll be there, waggling our arms and waving glowing ping pong balls just as fast as we can.