Microsoft is launching a mystery device nicknamed "Lips" as part of a gaming event tomorrow, says a rumor reportedly confirmed by 8Bit Joystick. Nicknamed "Lips," the device is expected to be a voice communication add-on for the Xbox 360 but is unlikely to be a typical headset, which is either packed into higher-end Xbox models as a wired headset or sold separately for wireless versions. Speculation has the device offering some level of voice recognition or else a dedicated microphone for music games.

Most other details are unknown, though Microsoft is also widely understood to be developing a new controller known only as the "Newton" that would allow for motion-sensitive games through a built-in accelerometer or gyroscopic sensor, similar to that found in Nintendo's Wii. Full information is expected to come from Microsoft itself in the near future.