Microsoft's unveiled Xbox Video Kinect, a video chat program that doesn't require a headset.
Using Video Kinect you can chat to users on other Xbox consoles or on MSN Messenger.
MS user, 'Lollip0p' showed off a chat between the conference in LA and another user in Dallas.
The pair could watch a video together (including sports and entertainment) and most impressively, automatically track the other user as she moved around the room with the Kinect camera.
What wasn't quite so impressive was the really unnatural conversation itself, which was basically two friends chatting, relaxing and promoting a product together.
Video Kinect will also be released on MSN Live Messenger, the company confirmed.
We're sure footage will appear online shortly...