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Carl2291 said:
Interesting...

Is this for Reach, or the new game they are rumored to be making?

They definitely have something else in the works.  They said a while back in an update that there were three projects in the works, 1 close, one far, and 1 very far away.

 

As for what it could be, it could have something to do with Natal, as that would easily classify as something no one else has done.  Especially in regards to animation as Natal allows for 1:1 full body tracking.