Even before the release of the Nintendo Wii in 2006, there were already rumors that Microsoft was developing motion control technology for the Xbox 360. In preparation for the 2009 Electronics Entertainment Expo, a new flock of rumors have cropped up and many are hoping for an announcement at the Microsoft E3 press conference.

May 2009: An article on Engadget cited an inside source when they posted images of a sensor bar connected to an Xbox 360 console. The motion sensor, they stated, includes a mic and camera and detects full body movement, eliminating the need for hand-held peripherals completely. Ars Technica followed up with their own article, stating they had possibly already played with the peripheral at CES 2008. The small camera-like device, developed by a company called 3DV, was able to detect movement in 3D space and featured technology "better than Nintendo's." Reuters later reported that Microsoft was in talks to buy 3DV.ars technica: Rumored Microsoft 3D Wii killer: we think we played with it (May 5, 2009)

July 2008: During a video walkthrough of the game Banjo-Kazooie Nuts and Bolts, creative director Ken Lobb mentioned that players could manipulate objects by moving or shaking the controller. The rumor mill cranked back up into high speed and many began speculating that an announcement about Xbox 360 motion controls would be made at the 2008 E3 trade show.ars technica: Banjo-Kazooie trailer strongly suggests 360 motion control (July 9, 2008)

May 2008: A leaked list of changes in the latest Xbox 360 dashboard update hinted at support for "calibration options for motion sensor devices." This once again sparked up rumors that the console was going the way of the Wii. One forum poster pointed out that the Live Camera is a motion sensing device.

August 2006: At the Gamefest event in Seattle, Washington, Robert S. Walker of Microsoft was asked about the possibility of motion-sensing controls for the Xbox 360. Walker confirmed that Microsoft had tested prototype peripherals, but they had discovered that using analog sticks to control movement was more precise. Gamers, he said, were split 50/50 and complained of physical fatigue after using motion controls for an extended period of time. Walker indicated that Microsoft was still experimenting with the technology, but that there was no point introducing a control scheme if gamers didn't like it.Firing Squad: Gamefest: Xbox 360 (And Windows) Accessories Future Plans (August 16, 2006)