Motion detection technology firm 3DV has confirmed that it has agreed buyout terms with a third party company – and rumours are pointing to Microsoft as the mystery buyer.

Talk of Microsoft moving for the Israeli company has been doing the rounds for quite some time, and Edge reports that 3DV has stated that it has “entered into a definitive agreement for the sale of substantially all of its assets to a third party”.

The deal is said to be worth around $34m, and if it follows through to completion is expected to be finalised some time in Q2 2009.

3DV is the developer of a camera-based motion technology reminiscent of, though supposedly far more advanced than, Sony’s EyeToy and even Nintendo’s Wii remote.

Microsoft has long been rumoured to be eyeing a way into the motion gaming market popularised by Nintendo. The integration of six-way motion sensing in Sony’s PS3 joypad means the Xbox 360 is currently the only next-gen console that lacks motion-sensing tech out of the box.