( CNN ) -- Microsoft Corp. on Monday unveiled its answer to the Nintendo Wii . In a promotional Microsoft video , a woman steers a race car while playing a controller-free Xbox gaming system . The software maker said it will release technology that lets people play video games by moving their bodies instead of clicking hand-held controllers . The service is tentatively called `` Project Natal '' ( pronounced nuh-TALL ) , and will work with any of the company 's Xbox 360 consoles , Microsoft said . `` Before , there was a barrier separating video-game players from everyone else , '' said Don Mattrick , senior vice president for Interactive Entertainment Business at Microsoft . `` Now , with Natal , everyone can join in using the best controller ever invented : you . '' Microsoft demonstrated Natal before an audience ahead of E3 , a video game and entertainment conference that officially begins Tuesday in Los Angeles , California . The show comes at a time of transition for the video game industry , which once was seen as immune to the economic recession but has been showing signs of slowing . Traditional games face new competition from developers who engineer video games for phones and distribute them for free online . Microsoft 's Natal does n't use any controllers , instead it relies on a camera to capture players ' movements in a 3-dimensional space . The company says that makes the system more intuitive and appealing to the masses . The system also recognizes faces , which lets it log players into games automatically . It can identify voices and take commands , as well . During the demonstration , players swung their legs to kick soccer balls and threw their hands in the air to try to block goals . In a driving game , players put their hands on an imaginary wheel which they turned to steer cars on their television screens . In a painting game , a man said the name of colors -- `` blue '' or `` light brown '' -- before swinging his arms to splash paint on a digital canvas . No launch date was announced for Natal , and its price tag was n't discussed . The announcement also comes as Sony and Microsoft are keen to capture the general audiences that are attracted to Nintendo 's user-friendly Wii console . Microsoft has been seen as a company that caters to more hard-core gamers . Hollywood director Steven Spielberg was on hand for the event and said Natal will help reach new audiences who may be daunted by complicated joysticks and controllers . `` The vast majority of people are just too intimidated to pick up a game controller , '' he said . `` Despite the size of the industry , still 60 percent of households do not own a video game console . '' The company said the no-controller format will revolutionize the gaming experience . Microsoft also said its facial-recognition software will let video-game characters communicate with players by identifying the emotions on their faces . Microsoft also is trying to make gaming a more social experience . The company announced partnerships with the social-networking sites Facebook and Twitter that will allow Xbox LIVE players to post messages about their gaming experiences and send screen shots to their friends in real-time . Both of those services will be available in the fall , the company said . The company also announced several new Xbox 360 games , many of them sequels to big-name franchises like `` Final Fantasy , '' `` Modern Warfare '' and `` Halo . '' The company also unveiled `` The Beatles : Rock Band , '' the newest game in the Xbox Rock Band series , which will be available in September . The two surviving Beatles , Paul McCartney and Ringo Starr , were on stage for the announcement at the star-studded event . Yoko Ono , widow of Beatle John Lennon , as well as Dhani Harrison , son of George Harrison , also were in attendance . Pro skateboarder Tony Hawk also was on hand to debut a skateboard-shaped controller that will power a new skating video game called `` Tony Hawk Ride . '' `` It looks similar to a skateboard . It 's a little bit shorter , but this thing is full of technology ... It knows where your feet are ; it knows where your hands are ; you can actually go in for grabs , '' Hawk said , holding a control skateboard without wheels . E3 , which stands for the Electronic Entertainment Expo , officially kicks off on Tuesday . Announcements are scheduled from Nintendo , Sony , Electronic Arts and other major players in the video game industry . CNN 's John D. Sutter contributed to this report .
Microsoft unveils future video gaming hardware that does n't use controllers . ' Project Natal ' monitors full - body movements to control gameplay , company says . No release date is given for the sensor , which will work with any Xbox 360 console . Xbox users also will be able to send updates via Facebook and Twitter .