Microsoft has demonstrated its upcoming Xbox 360 peripheral, code-named 'Project Natal', at the D8 technology conference.
Project Natal is Microsoft's answer to the Nintendo Wii gaming console, complete with motion- and gesture-sensing technology to enhance the gaming experience.
CEO Steve Ballmer first introduced the idea of Project Natal at the Consumer Electronics Show in Las Vegas, a few months ago.
The company had also said that the peripheral will be accompanied by a variety of specially designed games.
The official launch of Project Natal will take place at a press conference on July 13.
Sony is set to launch a similar device, the PlayStation Move, in the third quarter of this year as both console makers try to make in-roads into the dominance of Nintendo's Wii in the console market.