It's been a year now since the Newton rumor, the Xbox 360 motion controller, so we now have more motion control rumors.  It seems that the rumor has it that both the PS3 and Xbox 360 will reveal a new motion senor at E3.  The PS3 is rumored to use a camera to capture a person's movements to control a game.  This tech isn't exactly new but perhaps Sony has found a way to improve the technology. 

Not to be out done Microsoft seems to have some motion sensing device in the works as well.  It is also rumored to be shown at E3 as well.  It seems Engadget has spotted the device in a possible accidental leak.  It looks like it might be a camera as well but it's hard to say for sure.  E3 will be help in LA June 2nd thru 4th so we'll know what's actually happening then.

Source:
Joystiq - PS3
Joystiq - 360