Microsoft demoed a bunch of players playing with the "Kinect Sports" game moving around to interact with the different sports, posing in the yoga game, deflecting lazer bolts in a Star Wars game, and more. Most importantly, you do not need any sort of Wii Remote or Wii Balance Board to complete any of these games, which already makes Wii seem like old technology.

As for the interface and menu, it's also used by your own movements. Wave your hand to move the cursor around and push forward to select something. There will also be a Video Chat application where up to four friends can video chat with the built in camera and share photos as well.

Microsoft is expected to unveil more details today at their E3 Gaming Conference keynote at 1:30pm ET, along with possibly a new slimmer version of the XBox 360? Stay tuned.