Citing an anonymous source close to the matter, the Multiplayer blog wrote that the new controller has “four face buttons, an analog stick and microphone”.

Besides that it seems like Microsoft is ready to go one step further than Nintendo and incorporate into the controller the Xbox Live Vision Camera.

Although, Microsoft officially declined to comment about the rumor, the information was later confirmed by another famous gaming blog, 8-Bit Joystick. You might remember them as the guys who have announced for the first time that Bungie and Microsoft will part ways.

8-bit Joystick has even more details about this future controller. It seems like it is developed under the name “Newton” (as an homage to Sir Isaac Newton) and probably it will be released for this holiday season.

8-Bit claims that “Newton is also going to use an LED sensor bar that can be powered by the USB ports on the 360, it is going to have an LED sensor on the front accelerometer and gyroscope sensor that can detect tilt and motion, rumble motors, wireless two way data communication with the 360, a built in Microphone for Xbox Live and voice-activated games”.

It seems like the new controller will be based on the patents developed by Sarataoga-based Gyration, the same company that was involved in creating Wiimote. There were already rumor sometime last year that Gyration is working on a new Xbox controller.

As 8-Bit noted, a Xbox with a new revolutionary controller and a lower price could mean a big hit for Microsoft and it could spell trouble for Nintendo.

So far, nothing is for sure, but let’s not forget that sometimes the rumors tend to become reality.