Codename "Natal Project" now has been called Kinect. To be honest, i kinda loose interest in the WiiMote already because of its simulating movement to represent action in the screen. Which is not entirely "Motion Capture" movement technology which is used in animating models in movies. Sony has done one that mimics the motion capture movements but there is no news of release date from them.
UPDATE: Just found out they are also releasing its controller in Fall 2010. Playstation Move. Watch the trailer below, courtesy of IGN.com.
Kinect for XBOX 360 however changes everything. No more need for a controller, all it does is capture your movements with its "web cam". It's similar to what Sony did, but this obviates the need to hold anything in either hand.
Although this eliminates the complexity of having a sophisticated device, it does however has its drawbacks. You will notice that there will be a lot of lag between the movement and what happens on the screen. For a FPS gamer especially, this will be extremely aggravating. Another thing in mind is that with a controller in your hand, it looks like as though you are actually interfacing with the console, but without it, people who play them would look kinda idiotic. Without having to hold a physical something, you feel like as though your movements are not translating properly on the screen. And of course definitely no more playing games on your couch. Checkout the video below courtesy of Mashable.com