Rebecca Buckman
Forbes

 Think the \Nintendo\ Wii is cool? Microsoft hopes to outdo it with a new gaming console outfitted with a 3-D video camera that lets you hit balls, deliver karate chops and even change tires on animated race cars--all with a wave of your arm or a turn of your body.

The new system, codenamed Project Natal, was demonstrated Thursday at Microsoft's annual meeting for financial analysts, where it was touted as a next-generation project that could help the software giant grow future profits and market share despite the recession.

 It's a step beyond what Nintendo offers because playing games through the Microsoft system doesn't require holding any motion sensors or other hardware. The system recognizes body movements through the camera instead.

[Read Full Story] [Discuss]