Since it is a week after April 1st, this report should be just a good old rumor that could be true, but also completely false. MTV News reports that Microsoft is working on a motion controller similar to the Wiimote for the Xbox 360.

MTV published a sketch of what Microsoft is supposedly working on. The remote control shaped controller is supposed to have more features than the Wiimote.
The "Xboxmote" has four face buttons, an analog stick and microphone. There are also plans for the controller to interact with the Xbox Live Vision Camera.

PS3 and the Wii have motion controllers. Microsoft eventually will jump on that trend as well. I would be surprised though if they go the Wiimote route.
More details on MTV. Via digg.