With Microsoft showing off its Project Natal, Sony simply refuses to be outdone.

Sony demonstrated its own next-generation motion controller for the PlayStation 3. Sony's controller is a wireless, microphone-shaped device with several buttons and a glowing sphere on the top. The motion controller's sphere is tracked by the PS3's PlayStation Eye camera, and, based on Sony's demo, the controller looks like it can be used in almost any gaming genre.

Sony representatives said at E3 the company believes "some experiences still need buttons," and so it developed a controller that looks more advanced than Nintendo Wii's motion controllers, but stopped short of going completely device-free like Microsoft. Sony also used live demos for a variety of gaming scenarios, while Microsoft's live presentation included more basic gaming situations.

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