While many gaming firms are talking up the potential offered by new technology for the and the PS3, are a little worried that their biggest IPs such as and Dynasty Warriors won't work well with the new controllers.

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Speaking to CVG, Kenji Matsubara says he has some concerns about Natal, and the motion controller, because "we specialize in making games, so we have to explore whether we can achieve real-time response from a controller-free system."

He does however see the potential for the market. "We understand that, for casual gamers playing dance games or some sort of fishing game, this controller-free system can be popular. But for hardcore gamers who like action games, we have to research and develop games that satisfy our core gamers."

More on all this as we get it.

By Luke Guttridge