Here's the first images and footage of Microsoft's answer to SingStar, Lips, which was demoed by lovely singer Duffy at Microsoft's press conference. See; girls do play Xbox 360.
The Karaoke game's set to come with two wireless "interactive" microphones, which apparently have some sort of motion-sensing functionality built in so that you can tap a drum while you sing. They also look really flash.
Like SingStar, Lips scores you on your singing (pitch, rhythm and tune) and your overall performance. Maybe that's a little too much information...?
30 songs are included out of the box, but you'll also have the ability to use and sing your own music or download songs from Xbox Live. Hopefully MS'll get off to a better start than Sony did with the SingStar store, which took a while to collect some decent content.