Several sources are confirming today that there is indeed an Xbox 360 Wiimote clone project in the works.  The project name is said to be called "Newton" after the physicist Sir Isaac Newton.  This is just an internal name for now for when the controller comes to market (if it actually does) it will have a real retail name. 

The hardware is in the works so it might be a couple of months before shots of prototypes are leaked out.  Microsoft is rumored to have licensed patents from Gyration (the company Nintendo used to develop the Wii) to help develop their motion sensing controller.  Rumors are flying that the Newton will also be using its own LED sensor bar that will be powered by the USB ports on the 360.  Microsoft is supposedly also planning to pack this new remote with wireless communications to the 360, a built-in microphone (for the Xbox Live crackheads), 4 face buttons, and an analog stick.  GeekGods has also heard they might try to squeeze in the Xbox Live Vision camera, but that might be an exaggeration at this point. 

Nintendo could be in trouble if Microsoft could accomplish all of this and keep the cost lower than the Wiimote.  Of course Microsoft is being quiet about all these rumors at this point, so all of this could be just that: rumors.  But, if all goes well, there could be a new remote for your 360 by the end of 2008.