XBOX: Video Kinect announced

Microsoft has revealed a new service for Xbox Live – Video Kinect.

The device is a video chat service that also allows gamers to watch TV, video and music with their friends and family.

The device uses Microsoft’s new motion controller and even tracks players as they move around the room.

It will also be available over MSN Messenger for those that do not own an Xbox.

"We are making entertainment controller-free," said a Microsoft representative at the firm’s E3 press conference.

"You’ve seen it with Zune, Last FM, Sky, Facebook, Netflix. We are bringing Kinect to every country where the Xbox 360 is sold and we are launching new services – including Microsoft Video Kinect."