According to MTV, Microsoft is currently working on a WiiMote-like controller to be released later this year.
The news came out from an unnamed game developer who confirmed that Microsoft's prototype is designed to do all the WiiMote does, "and more".
The project has been in development since last August but Rare studio, who has been tasked with creating a unified interface and look for the controller, is having trouble keeping its deadlines, according to the source.
The source also drew a sketch (available in the screens tab) of the latest prototype he has seen. The prototype looks very similar to Nintendo's WiiMote but lacks its Nunchuck and comes with an analogue stick and four buttons. There are also plans for the controller to interact with the Xbox Live Vision Camera.
Microsoft, according to the unnamed source, is currently testing the new controller with hardcore games such as Halo and Gears Of War as well as casual games to see what works and what doesn't.
"The whole thing is a colossal clusterf. [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."
The source concluded that Microsoft hopes to release the new controller by the end of the year despite Rare's inability to meet several development milestones. Expectedly, Microsoft refused to comment on "rumors and speculations".