The video below, if it is to be believed, is an amazing piece of tech demonstrating the capabilities of the Xbox 360's Project Natal motion controller. Presented at Microsoft's E3 press conference this morning by Lionhead's Peter Molyneaux was an artificial intelligence named Milo who could interact with you through the Project Natal motion controller recognising things like emotion, seemingly answering questions and passing objects between you and himself. It's an incredible demonstration and if I wasn't such a cynic (Re: Killzone 2's "gameplay footage") I would be completely floored.

If the Project Natal motion controller does everything Molyneaux says it does you can bet that Nintendo are in crisis talks right now and you can almost guarantee that Sony will announce their own motion controlling device at their press conference tomorrow.

Check this video out and make sure you're sitting down.