Sony may have a motion-sensing controller in the pipeline and could be planning to show it off to the world at E3 this year, according to a Variety report.
The report suggests that 'several sources' have confirmed that this is the case, with one of them even claiming to have seen the device.
Apparently, the prototype they saw several months ago looks 'funky', and uses a built in camera and LEDs to track the device's movement before transmitting it to the PS3. They even say that it is more precise than the Wii remote, particularly along the Z-axis.
Of course, Sony has already contacted several developers about getting some software for this new-fangled device on the go.
Sony has yet to comment, making it likely that we will have to wait until E3 for any confirmation.