Microsoft planning to take on Wii and EyeToy?

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Microsoft is looking to acquire an Israeli imaging company in a bid to 'anxiously outdo the Wii' according to new reports on the web this morning.

According to a report in the Israel press, the format-holder is looking to buying 3DV Systems and its camera-based motion-sensing technology and integrate it into its games business.

Reportedly, Microsoft will pay $35m for the firm, whose ZCams tech is in effect like Sony's EyeToy but with more precise imaging and motion sensing due to their 3D cameras.

Click here to read the full report on Develop