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Microsoft has been secretly developing technology that lets people play videogames using natural body movements instead of handheld controllers.

The US software giant behind Xbox 360 videogame consoles revealed a prototype of a project codenamed ”Natal,” a system that combines cameras and voice and face recognition software to recognize people and their actions.

Natal lets people play driving games by simply moving hands as if turning a car steering wheel. In-game characters in boxing, skateboard, football and other sports titles mimic the body movements of real players.

The system scans faces and voices to determine who is playing.

Xbox 360 consoles equipped with Natal will be able to respond to spoken commands for actions such as playing movies or connecting online with friends for video chats.

An expected completion date was not disclosed, but Microsoft yesterday released a software kit for videogame makers interested in designing titles to take advantage of Natal’s capabilities.

”This is a landmark in computer entertainment. This is true technology that science fiction has not even written about and this works today,” said British videogame icon Peter Molyneux, chief of Lionhead Studios.