The big news from Microsoft' E3 press conference was clearly its "Project Natal" motion sensing technology.
We're pretty sure that it is based on technology from 3DV systems, an Israeli start-up that we wrote about some time ago. I'm hearing that Microsoft has in fact, acquired the company, as has been reported. I have yet to get that 100 percent confirmed, however.
In any case, here's a video from Microsoft showing the technology in action.