There have been plenty of rumors floating around that Microsoft will release some sort of motion-sensitive controller for the Xbox 360. The most likely time for them to make such an announcement would naturally be E3. Well they may have let the cat out of the bag just a little early.
During a recent preview for Banjo Kazooie: Nuts & Bolts, Ken Lobb (MS Game Studios creative director) was providing commentary when he said "So you basically grab with the wrench and then you twist the controller around and it'll move different things in the game." Twist the controller, eh?
Of course the official statement from Microsoft is a flat-out denial. "Ken’s comment is in reference to rotating the left analog stick while hitting the X-button to move different things in the game.” Right, because that's exactly what the words “twist the controller” bring to mind.