The big rumor/story on the internet on monday was a MTV News report that Microsoft has been developing a Wiimote clone controller. From my perspective I find this report highly plausible for a number of reasons.
And I quote from the article.
The controller itself isn't much different in functionality or design from Nintendo's Wii remote, but comes with four face buttons, an analog stick and microphone. There are also plans for the controller to interact with the Xbox Live Vision Camera, the source said.
Microsoft's controller isn't just a response to "Wii Sports"; it's slightly more ambitious. "They want the usual assortment of 'Halo'/ 'Gears'/ 'Forza'/ whatever, just in waggle form," our source told us. Such idea-generation has not gone smoothly. “The whole thing is a colossal clusterf---," the source said. "[Microsoft] marketing just want it so they can match the Wii point for point. The biggest parts of their marketing materials outline how easy it would be for third parties to port their Wii games to the 360.”
I know for a fact that Microsoft is currently developing at least four new accessories for 2008, the 60 Gig hard drive and the Blu-Ray player are two likely candidates and a motion sensing controller is a likely possibility. The external Xbox accessories market has been a surprising finacial success for them and putting a "Casual Motion Sensing" controller on the market would have another controller that they could market. They have had past job postings looking for hardware experience with motion sensors. Microsoft is really worried about the wide popularity of the Nintendo Wii and since there is motion sensing tilt sensors in the PS3 controller not having a similar controller makes them the odd duck.
Microsoft, Xbox 360, Nintendo, Wii, Wii Remote, Wiimote, Xbox Live, Game Console