Microsoft has been developing a Wiimote-esque controller since last summer, and it's due on the market later this year, a "source" has told MTV news.

The 360 Wiimote is shaped very much like the Nintendo Wii's Wiimote and has a speaker, microphone, four LED lights, A/B/X/Y face buttons, an analogue stick and an underside trigger, the graphic here has been sketched by said source.

Describing the gameplay that it would allow as "Halo, Gears and Forza in waggle form", apparently there's some issues with its development with some at Microsoft wanting it to be as Wii-like as possible - so games can be ported directly over from Nintendo's console - while other want it to be more feature-rich.

Said to be currently being created by Rare, Microsoft are also apparently working on Mii-like avatars too - but the whole project is facing delays which could mean that late-08 date is in jeopardy.

We'll bring you more when we have it.