A motion-sensing video camera is in development for Xbox 360, according to the Wall Street Journal.
The newspaper reports it will "allow players to control games with the movement of their bodies". You won't need to hold any peripherals, apparently - just stand in front of the camera and it will track the movement of your hands, legs and head.
Yes, it sounds an awful lot like EyeToy. But "people familiar with the matter" said Microsoft's camera uses 3D technology, "which gives players more accurate control over games than earlier game cameras did".
Microsoft recently acquired Israel-based company 3DV Systems, which sources said has developed a 3D camera and owns related patents. 3DV bossman Zvika Klier told the WSJ, "Unfortunately I can't comment on the rumors surrounding this deal... We will provide more information when we can."
The WSJ reckons the camera could be unveiled at E3 next month, but won't be released until next year. It'll be available as a standalone product and perhaps later on as part of a hardware bundle. There's no word on price just yet.
Microsoft declined to comment.
UPDATE: This isn't the first time such a camera has been rumoured. Eagle-eyed readers have pointed out we ran a similar story earlier this month. Thanks, readers, and keep those eyes eagly.