E3 is a gamers heaven: for three days each year, the video game industry comes together to show off what they’ve been working on. This year, Microsoft unveiled “Project Natal” — a camera that detects motion, facial expression, voices and more, for the Xbox 360. Instead of the traditional hand-held controller, Project Natal is meant fully immerse the player into the game using a camera, depth sensor and microphone.

On stage, Microsoft’s Senior Vice President, Don Mattrick, joined acclaimed film director, Steven Spielberg, in showcasing the new device along with three games to demonstrate how the interaction works.

Ever since Nintendo changed direction with Wii, Sony and Microsoft have been looking at ways to improve the console gaming experience and lure in potential gamers. When Wii was launched, everyone in the family joined in from little Johnny to grandma since it was easy to pick up and offered a variety of easy to play games. Microsoft is looking to break down the walls that keep players sitting on the floor holding an Xbox 360 controller in their hand and get them up and moving, dodging bullets and reacting to a punch in the gut.

Interested developers will be receiving Project Natal development kits shortly, but no information on a release date or any major titles taking advantage of the technology were made available.