Rumour: Microsoft to Create Wii-Remote?

After Sony denies wanting to Wii-up the Playstation, apparently Microsoft maybe stepping up to take on waggling.

According to an unnamed developer speaking to MTV News, Microsoft has been hiding away working on a way to tackle Nintendo's dominance in the world of innovation by coming up with a similar way of shaking and pointing.

Presenting...the Xbox 360 remote...supposedly:

The controller itself isn't much different in functionality or design from Nintendo's Wii remote, but comes with four face buttons, an analog stick and microphone. There are also plans for the controller to interact with the Xbox Live Vision Camera, the source said.

Microsoft's controller isn't just a response to "Wii Sports"; it's slightly more ambitious. "They want the usual assortment of 'Halo'/ 'Gears'/ 'Forza'/ whatever, just in waggle form," our source told us. Such idea-generation has not gone smoothly. "The whole thing is a colossal clusterf---," the source said. "[Microsoft] marketing just want it so they can match the Wii point for point. The biggest parts of their marketing materials outline how easy it would be for third parties to port their Wii games to the 360."

Banjo Kazooie creator Rare is said to be developing an avatar system similar to the Mii interface, along with fleshing out the interface for the proposed remote.

Would this approach to motion and pointer control work, or is it a slightly delayed April fools joke?