Goodies including the camera (they had to being this one out especially since Sony announced one for the PS3), racing wheel and headset. The camera will even allow photo messaging and video chat for Xbox Live Gold subscribers. The camera will also be USB compatible and be usable on a Windows PC. Of course the Eye toy (as Sony calls them) has been immensely succesful on the Playstation and more than 5.3 million pieces have been sold since it made its debut. Eye toys such as these rely on gesture control for moving the characters on screen.

Gesture recognition and control is a logical evolution in gaming," said GestureTek CEO Bill Leconby.

"Our technology has been thrilling and entertaining users in public and private installations around the world since well before the movie Minority Report popularised the concept of gesture control. This offering opens doors to unlimited applications in the gaming experience."

"The fusion of GestureTek technology and the Xbox 360 will enhance the entertainment and gaming experience for our customers," said Microsoft's Aaron Greenberg. Standing in front of the Xbox 360 camera, gamers will interface with games using natural full body gestures, while immersing their real time image into the game. As part of Xbox Live, the gesture technology will enable gamers to customize their game experience while socializing in their game worlds in ways they never could before. Imagine standing in your living room as you snowboard down a mountain, where leaning right and left lets you cut across the slopes, and springing upward guides you over jumps. Camera enabled gaming combined with motion control technology is endless in application, whether it is a game of volleyball, playing along with the music on virtual instruments, fly fishing, shooting hoops, goal tending, dodging bullets, or even fighting ninja’s; the game controller is the gamers own body.

The Xbox 360 Wireless Racing wheel extends the console's wireless controller tradition to steering wheels and offers force-feedback technology to let the road fight back and add realism to racing games such as the upcoming Forza Motorsport 2. Microsoft also announced the Xbox 360 Wireless Headset, a wireless headphone and microphone set that matches the styling of the Xbox 360 console.