Microsoft has unveiled ‘Project Natal’ for Xbox 360 console, a new hands free control system which uses face recognition and sensors to enable users play games.

According to Microsoft, ‘Project Natal’ sensor combines an RGB camera, depth sensor, multi-array microphone and custom processor running proprietary software – all in one device. It tracks the full body movement in 3-D and responds to commands, directions and even a shift of emotion in the voice.

In addition, ‘Project Natal’ sensor is not light-dependent and can recognise anyone by looking at the face; it not only reacts to key words but also understands what the player is saying.

Microsoft also announced Facebook and Last.fm for TV, Xbox LIVE party for movies and instant on 1080p HD streaming video on Xbox LIVE.

Steven Spielberg, visionary director and producer, said: “The next step in interactive entertainment is to make the controller disappear. With ‘Project Natal,’ we’ll see games that bring everyone together through technology that actually recognises us.”

Don Mattrick, senior vice president for the interactive entertainment business at Microsoft, said: “Today with cultural visionaries at our side and controller-free gaming on our horizon, Xbox 360 authored a new page in home entertainment history. For us, this E3 is about breaking down barriers – between generations, between games and entertainment, and most important, between video game players and everyone else – in a way that only Xbox 360 can.”

In addition, Microsoft announced that it will more than double the number of markets where Xbox LIVE offers its TV shows and movies, growing from eight to 18, by adding Australia, Austria, Belgium, Denmark, Finland, Netherlands, New Zealand, Norway, Sweden and Switzerland.