Kinect's built-in camera and microphone (due later this year, no price set) uses facial and voice recognition to let you, for instance, log onto Xbox Live, start games and pause movies. And a new menu lets you choose games or services such as Netflix by simply reaching out and pointing toward the screen selection. Video chat lets Xbox 360 homes connect; the smart camera widens when another person enters the room.

Microsoft's Marc Whitten credits Nintendo with setting things in motion: "They have done some amazing things and brought new people to the category. This is fundamentally different. It's (about) my body being the controller (and) being able to communicate with just my voice to the system."

Among games in the works:
-Kinectimals lets you train and play with 20 different virtual cats, including a lion, cheetah and tiger.
-Joyride, a racing game, lets players use their hands to hold an imaginary steering wheel - pull your hands toward you and push back out for an acceleration boost - and their bodies to execute jumps and tricks.
-Kinect Sports has six activities including boxing, bowling, beach volleyball, track and field, soccer and table tennis. To serve a volleyball, you mimic the real motion; in soccer, you can kick the ball or do a header.
-Kinect Adventures includes a river-raft time trial and obstacle course, playable by up to four players. On the raft, playing as a duo, you and a partner must lean one way or another to steer. Jumping helps the raft reach special areas for extra points.
-Dance Central, in development by MTV Games, incorporates immersive, full-body dancing without the need for a controller.
-Star Wars characters and iconic Disney favorites will be featured in separate new games being developed at Microsoft in conjunction with LucasArts and Disney.