As we previously reported, Project Natal is a controller-free video gaming system, that allows gamers to play using body movements. No price point has been set just yet, but Microsoft confirms that Natal will work with its current Xbox 360 console.
Several new games for Xbox (and hopefully Natal) were also announced, including a new version of Halo, which will be available this spring.
"What Star Wars is to film and what Harry Potter is to fantasy books, Halo is to the gaming industry," said Robbie Bach, Microsoft's president for entertainment and devices. Are you psyched?