Newly released patent applications from Microsoft have sparked speculation that it is to unveil a Wii remote rival at the E3 expo in Los Angeles.
An application was filed in 2007 for a motion controller, dubbed Magic Wand, that interacts with "a collection of sensors".
Microsoft says it will not "comment on speculation" about a possible launch.
Gavin Ogden, from gaming site c&vg.com, told the BBC that Microsoft needed to "jump on the motion sensor bandwagon".
"We thought they were going to show something off at the E3 Expo in 2007 - some sort of waggle stick - but nothing materialised," he said.
"I have no doubt they are going to try and do something, although it remains to be seen how they do it." - BBC
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