Rumor that Microsoft were working on a Wii styled controller is old news, but what is new is a schematic for the controller that's appeared at the MTV website. According to the piece the schematic comes via a developer who was briefed on the new motion sensing controller.
If true it seems MS owned Rare has been given the task of working on and designing the new controller. It is also said Rare are working on Mii like avatars that will be "more detailed than what Nintendo has allowed" and "aren't tied to a controller when in use, as Xbox Live profiles currently are." All sounds interesting and hardly surprising given Sony too jumped on the motion sensing wagon. If the controller is real (and one would assume it to be a good business move), we may have more concrete detail on it by years end.