After MTV News broke the news on Microsoft designing a Nintendo Wii-like Wiimote for the Xbox 360, 8bitjoystick felt it was time to give up their secrets as well. Not only do they confirm that the project exists, but they can give up the codename for it: Newton. Jesus was kind enough to mock up a version of the controller based on MTV's sketch.
Jake also says that Microsoft has recently licensed patents from Gyration, maker of those gesture mice we all know and don't really care about. Nintendo did the same back in 2001 in order to help develop their own Wiimote.
The 360mote will also receive signal from an LED sensor bar (like the Wii), but one-ups the Wiimote by having a microphone on board for Xbox Live chat. He doesn't have many other solid points of data—there are guesses about it using the standard rechargeable battery pack and what colors it will have—but he does think the target date of late '08 looks very likely. [8bitjoystick]