According to Variety, “several sources” have indicated that a motion-sensing controller is currently in development for PlayStation 3, with the peripheral set to be unveiled at E3 next month.
The site claims that the device utilizes LEDs and a webcam to track movement. "Because the camera can read different color lights and the shape and angle of each light, it’s much more accurate than the Wiimote," the report states.
"It can track precise movements, including along the Z axis (pushing toward and away from the TV; something the Wii is really bad at) as well as velocity."
Aesthetically the device is said to look "kinda funky,” with "a bulb to house the LEDs on the end.” Apparently, Sony is keen to have developers and publishers churn out some early software to demonstrate the pad.
Stay tuned for more info as it becomes available to us.