Microsoft unveiled its new control system for the Xbox 360 console, dubbed Project Natal, at the E3 conference in Los Angeles on Monday.

Project Natal is a fully hands-free control system that will use face recognition and motion sensors to allow users to play games. The product will work with all incarnations of the Xbox 360 console.

Film director Steven Spielberg, attending the launch, said it was a window into what the future holds.

This is a technology that recognizes not only your thumb or wrist but recognizes your entire being, Spielberg told BBC. The technology knows who you are and instantly personalizes the gaming experience.

Although still in the early stages, Microsoft has sent prototypes to all the main game developers. The software giant said it is still developing games and did not disclose an official release date or how much it would cost.

Spielberg made an analogy with the film industry, calling it an evolutionary step for games.

It's like the square screen we saw all of our movies on in the early 1950s. Then The Robe came out in Cinemascope. And then came CinRam and Imax followed. That's what [Natal] is.”

Watch a demonstration video of Project Natal in action:

Spielberg, who is currently making video games for EA, disclosed that he also writing games for Microsoft's new platform.

Project Natal was not the only big announcement that Microsoft at the e3 conference.

The company unveiled 10 new games for the Xbox 360, including Beatles Rock Band, Call of Duty: Modern Warfare 2, Tony Hawk Ride and Final Fantasy XIII.