Microsoft sure are trying to put a lot of tech underneath your TV. It is tentatively called Project Natal a controller free gamer environment. This thing is jaw droppingly impressive. Full body 3D motion recognition, facial recognition, voice recognition, the ability to scan in objects and all it's connected to the net. Wow!
Of interest to controller nerds like my good self is that Johhny Chung Lee of Wii Project fame has been working on the project. "The 3D sensor itself is a pretty incredible piece of equipment providing detailed 3D information about the environment similar to very expensive laser range finding systems but at a tiny fraction of the cost. Depth cameras provide you with a point cloud of the surface of objects that is fairly insensitive to various lighting conditions allowing you to do things that are simply impossible with a normal camera....The human tracking algorithms that the teams have developed are well ahead of the state of the art in computer vision in this domain. The sophistication and performance of the algorithms rival or exceed anything that I've seen in academic research, never mind a consumer product." - Johnny Chung Lee
Sony playstation recently put a patent on a video camera and ultrasonic ranging combination based controller for their PS3. In comparsion to the Project Natal controller it already seems outdated.