Word straight out of the currently underway Kinect/Natal Experience event; MS has just shown off a Star Wars game played with the motion control device.
Apparently the player has to wave their arms to swing their Lightsaber in on-screen battles. The brief footage showed the player taking on Darth Vader. And it looks pretty f-ing cool, we're told.
Very little more info about that is available - it was a quick demo - but it's probably one of the "new games being developed at Microsoft in conjunction with LucasArts and Disney" that USA Today prematurely blabbed about earlier.