The demonstration shown revealed that it works much like Sony's hit game. However, the microphone's are wireless, and you'll be able to play all songs that you've transferred to your hard drive. There were no specifics on how this would work. The microphones will also have glowing lights that flash to the beats and motion sensors so you can 'shake' about with the song as it plays.
Lips is scheduled for an end of year release, just in time for holidays.

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