At last after leakage reports and spculations Microsoft has announced glances of the new Xbox 360 camera at the Game Developers Conference held in San Jose, California.

The camera wont be a simply gesture gaming Playstation Eye Toy it is expected to record 640x480 pixel video at 30 fps and will be able to snap 1.3MP photos which the user cans send over Xbox Live. People in a room also can take part in video chatting because of the included microphone.
Hopefully, gamers from now onwards will be able to import their mug into the games. Yes, guys, Xbox game is no more a struggle between weird gamertags.
USB 2.0 bus-powered device
Smooth, near DV quality video: up to VGA 640x480 at 30 FPS
High-def images: still photos up to SVGA 1280x980 (1.3 Mp)
Manually adjustable variable focus: 2 feet to infinity
Field of View: 43 degrees
On board image processor
Digital zoom, cropping
Auto exposure, white balance, gamma correction, sharpness
Long (~9 feet) cable to reach around large TVs
Includes a headset for great audio.