Rumour: Sony’s motion sensing controller for PS3 to be unveiled at E3

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"Sony is set to officially unveil this new device at E3, which is already the venue for some rumored new Sony hardware! How exciting! To be honest, the new device could still be shaped like a regular controller, but include pointing."

"A good source saw a working prototype several months ago that largely fit what was in the patent. Sony’s controller apparently used LEDs (light emitting diodes, essentially little electric light sources) and a small webcam to track the device’s movements. Because the camera can read different color lights and the shape and angle of each light, it’s much more accurate than the Wii-mote. It can track precise movements, including along the Z axis (pushing toward and away from the TV; something the Wii is really bad at) as well as velocity."