MS is working on a camera system apparently, and it's accurate enough to recognize movement. They want it to offer game uses like the Wii controller, but without having to use the controller. It's a very short jump to TrackIR functionality, if it can detect forward/backward movement as well.
I've always thought they should incorporate TrackIR into the headset. My X3's have IR sensors on left and right, why not use something just like that for TrackIR? The good thing about gaming on a console is that just about everyone has a headset--even wireless. Flight games would benefit hugely, but also shooters. Imagine leaning over to have your soldier lean around a corner--use those precious few buttons on the controller for some other function. This is something long overdue.
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