Well, we thought Microsoft would unveil a remote motion-sensing controller to go with the swanky new 3d Xbox 360 dashboard design, but it didn't materialise at the E3 press conference yesterday.

Instead, it revealed a pair of motion-sensing Xbox 360 microphones, which will be used in a new karaoke game called Lips.

LIPS is Microsoft's answer to Sony's extremely popular Singstar game and the motion-sensitive controllers can be used as percussion instruments in game. The wireless microphones are also equipped with lights that flash to the rhythm of your voice.The game will follow a similar vein to Singstar with players being awarded points for pitch, tracking, rhythm and tuning.

Keiichi Yano, celebrated developer behind some of the industry’s most beloved rhythm games, brings his vision of collaborative and social musical entertainment to “Lips.” The first and only singing game that offers interactive motion-sensitive microphones to make your party rock all night long, “Lips” encourages players to toss apprehensions out the window and join the party.

Personally, we'd have preferred a new controller.

Be sure to check out our full E3 2008 coverage