UPDATE (July 31, 2010): Project Natal is now called Microsoft Kinect. See updated article here.
This is old news but for those who haven’t heard yet, Microsoft announced last June 1, 2009 during E3 2009 that they are developing the next generation of console gaming. Code-named Project Natal, this will be on the Xbox 360. It features controller-free gaming. All you need is yourself. With motion sensors and cameras installed on your TV setup, Project Natal can detect hand and body gestures, facial expressions, and voice. The resulting experience is pretty amazing!
Check out this trailer:
There is no announcements yet on price or a release date but there are expectations for its release late 2010.