Rumors have been circulating for ages about Microsoft’s plans to create a motion-sensing controller to cash in on the huge casual gaming market. Pictures have occasionally surfaced showing a slim controller similar to the Wiimote, but it may be that these were created by Microsoft to throw people off the trail. It’s true, Microsoft does have plans for creating a motion-sensing peripheral for the Xbox 360, but it’ll be more along the lines of the Eyetoy from the PS2.

According to CNN it’s called the Xbox Fluid and it’s a camera that tracks the body movements of the user. This will of course lead to you and your friends flailing around like complete morons in front of your TV screens from time to time, since visual recognition software isn’t as advanced as some might hope.

There have been arcade games that combined camera technology with other controllers to create some rather interesting types of games though, so the potential for the controller can range a little beyond the expected casual games.