Microsoft may be making a motion sensitive controller for the Xbox360 that will be released by the end of the year, says sources. Apparently, this project has been in development since the summer of 2007. MTV cites an anonymous developer who claims that this motion sensitive controller will also have its own Mii-like avatar system with the input of developer Rare, who is said to be late on delivering a "unified interface and look for the controller."

The anonymous source has drawn out a simple sketch of what the controller will look like. Look below:


Rumored materials illustrates "how easy it would be for third parties to port their Wii games to the 360."

This controller hasn’t yet been confirmed, so keep this news as a rumor. Who knows? Microsoft may reveal this motion sensitive controller at this year E3. If this rumor is true, then it's going to be one big battle for Nintendo and Microsoft.