The much anticipated Project Natal motion-control gaming system for the Xbox 360 will be released by the end of the year, Microsoft says.

Whether the motion-controlled games will be a fad or the way of the future is yet to be seen, but it seems hardware developers across other gaming platforms - including PlayStation 3 and PC - are also moving into the area popularised by Nintendo's Wii.

In an opening address to the International Consumer Electronics Show in Las Vegas this week, Microsoft Entertainment and Devices president Robert Bach said Project Natal would be a major factor behind making 2010 "the biggest year ever" for Xbox 360. The system uses an RGB camera, depth sensor and multi-array microphone to control gameplay, rather than a conventional handheld controller.

Bach also announced the Game Room - a retro gaming service that will allow gamers to play classic arcade games online against friends on either Xbox 360 or Windows PCs.

He said the Game Room would launch with roughly 30 games later in the year and would allow users to invite other Live users to check out your virtual arcade room and its collection of titles.

James Heffield