Microsoft unveiled Project Natal at the E3 2009. Project Natal is the rumored Xbox fluid motion controller system. Microsoft Project Natal is actually much more than a Motion Controller, it is complete controller free gaming.
The Project Natal, pronounced 'nuh-tall' sensor is the world's first to combine an RGB camera, depth sensor, multi-array microphone and custom processor running proprietary software all in one device.

Unlike 2-D cameras and controllers, Project Natal tracks your full body movement in 3D, while responding to commands, directions and even a shift of emotion in your voice. In addition, unlike other devices, the Microsoft Project Natal sensor is not light-dependent. It can recognize you just by looking at your face, and it does not just react to key words but understands what you are saying. Call a play in a football game, and players will actually respond. Want to log onto Xbox LIVE? Simply step in front of the sensor.
Natal sounds really great and controller free gaming is the future. The only problem we have now is that we do not know when Microsoft is releasing Project Natal. It is questionable if Microsoft is able to launch Natal for the 2009 holidays.
Via the Microsoft Project Natal page, where you can sign up for updates. See the Project Natal promo video below that Microsoft showed at the press-conference.
More E3 2009 News.