The Wall Street Journal has just reported that Microsoft is currently developing a motion-sensing camera peripheral for the Xbox 360. Might as well call that a FACT then!

Microsoft, bless ‘em, are still refusing to comment on what they deem to be rumour or speculation. But that has had zero effect on the Rumour Mill, which has been churning this one around for some time. However, the Wall Street Journal reckons to have a little more recent information, quoting a “person familiar with the company’s plans” and other sources unknown in stating that the new technology could debut as early as the forthcoming E3 tradeshow but is more likely not to launch until next year. Also the new camera will be sold separately to begin with but will be bundled with Xbox 360 hardware later on. Pricing still remains undetermined though.

Meanwhile, the WSJ reveals that the camera is based on technology that Microsoft has developed itself, although it transpires that the company has just bought an Israeli outfit called 3DV Systems Ltd. which has also developed a 3D camera system. We doubt that Microsoft’s acquisition is purely coincidental.

As for the camera itself. Well, if recent rumours are correct, it sits near the TV and is able to accurately detect the movement of a user’s arms/legs/whatever without the need for any separate peripheral and, crucially, in all three dimensions. Sounds like a marriage ‘twixt the Playstation Eyecam and Wii MotionPlus to us. But very cool...