Saw this yesterday, and to be frank, it's just another admittance of defeat to the Wii from its competitors, who always, until now, maintained the attitude that the Wii and its controller concept would fail...
Sony too has jumped on the bandwagon...http://news.bbc.co.uk/1/hi/technology/8080436.stm
Some of the things they demoed on the Xbox at E3 were quite frankly bizarre and nothing to do with gaming. Speilberg being associated with the Natal may make headlines, but at the end of the day if you throw enough money at someone, they will endorse everything.
There is no "Wii killer" as much as the fanboys of the Xbox 360 and PS3 like to say there will be; we are approaching 4 years into the 7th gen now, and the Wii is still outselling both the PS3 and the 360 globally
(and you have to bear in mind that Nintendo have yet to even drop the price from the always profit-making original RRP, whereas both Sony and Microsoft are still heavily subsidising vastly reduced prices and thus have been losing money on each and every unit sold), and has sold more than double the PS3 and almost double the Xbox (despite Microsoft launching the 360 a full year ahead of the Wii).
This is not innovation, it is simply evolution. They are both taking the Wiimote concept to the next logical step, outdoing it, but only just. The real innovator was Nintendo, and with these new controllers, the codename Revolution for the Wii is even more fitting.