(Please note, I'm not necessarily criticizing this. There are plenty of games for the Wii where the motion control seems tacked on, and if they would just get rid of it and go with regular controls, the games would be better. So the idea of a console that is still focusing on games that let you press a button instead of swinging your arms like a mad ape on a bender is pretty nice.)
M$ is attempting to get ahead of the game now. They are working on Project Natal, a camera-based motion control system. Because God knows the EyeToy is just selling like hot cakes. Peter Molyneux, the head of Lionhead Studios (Black & White), has confirmed the motion camera will factor heavily into Fable III. M$ has put all their dev houses onto working on Project Natal stuff.
And that includes Rare.
Rare was one of the reasons I bought a GameCube initially. I loved Rare's stuff like Conker's Bad Fur Day. But, M$ was interested in them. Nintendo sold them off, and the industry did a double-take. Rare does quality stuff, as well as creating franchises for Nintendo (Banjo-Kazooee, for example), why did they let them slip away. Well, Rare doesn't have the best reputation for making deadlines and making budgets. Compared to Retro Studios, which was working on a football game when Nintendo bought them and had the Metroid franchise dropped on their lap which they then rose to the occasion and made fantastic games, Rare has gotten wobbly. With M$ owning them, they only got worse. The Rare making games now is nothing like the Rare that came up with Battletoads and Anticipation. Flat, uninspired, derivative, and following trends instead of making them, and the sales of the games indicate Nintendo got one hell of a deal for letting them go. Kameo -- Elements Of Power was supposed to be a GameCube game. Then, when M$ bought them, it was supposed to be for the XBox. Development took so long, it was shifted to a launch title for the 360. It has sold just a little over 300,000 copies.
Supposedly, Rare was working on a Kameo sequel when M$ decided they had enough. They have reorganized Rare and dumped a bunch of people, and one of the projects they apparently killed was Kameo 2. So why everyone is only noticing now, I have no idea.
The Kameo series had potential (it was certainly the more polished of Rare's 360 launch efforts. Perfect Dark Zero had some really lulzy physics), but people just didn't buy it. And considering how much Rare has mucked things up (I never liked the endless hunt games like Banjo, and they made it even worse with Nuts And Bolts, Grabbed By The Ghoulies is a bad joke dragged out, and Conker was just the N64 game redone, no new material other than the online death matches), I suppose this either would have taken forever or it would have been ruined. I'm sort of curious what would have happened, but I suspected it would never come to be. With the news getting out now, I never will.