Sure, the Wii is cool with its accelerometer touting Wiimote but Micrsoft has recently come forth and put their newest project on display during E3 ‘09: Project Natal.
As you can see in its debut trailer (featured above), Project Natal will do everything the Wii does and more, all without any peripherals besides a camera developed by 3DV. Utilizing this technology Microsoft hopes to let gamers do everything from playing racing and fighting games to flipping through movies and participating in video chats using nothing more than motion and vocals recorded by the camera.
Unfortunately, as the video states in the begining, Project Natal remains a concept as of now so putting a release date or price to it would be impossible.
Live demonstration of Project Natal included after the break.