As expected, there was an announcement regarding some motion-sensing technology from Microsoft at E3 today – but it was SingStar rival Lips, not a Wii Remote clone, that provided it.

The head of development on the title, Keiichi Yano – who was previously responsible for Elite Beat Agents and Gitaroo Man – introduced the crowd to the game, including microphones that respond to a shake with in-game percussion.

Welsh songbird Duffy came on stage to sing along with her own song, Mercy, in the game – which will be fully compatiable with iPods and Zune. According to Yano, that makes it the first ever game “where you can sing along to your own music collection”.

There was also another family-friendly title on show to rival a PlayStation classic – in the shape of Codemasters and Kuju game You’re In The Movies!

Microsoft execs such as Shane Kim and Don Mattrick filmed themselves dancing and swatting virtual wasps in the game - all shown on screen - which was very reminiscent of Sony’s EyeToy. They also showed off a ‘B-movie’ that they had created using the title’s features.

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It was announced that the game will be bundled with Microsoft’s official Xbox 360 camera.