NOT FOR the first time in the history of the Electronic Entertainment Expo (E3), which finished yesterday, the show was stolen by a piece of kit that is not ready to go to market.

Microsoft’s motion sensor add-on to the Xbox 360, labelled Project Natal, was widely felt to be the main attraction of the expo and could signal a major power shift in the games market

Ten years ago, Sony exhibited PlayStation 2 as not much more than a shell but it was enough to undermine the Sega Dreamcast which was working at the same event. Despite its head start, Dreamcast was a disaster and Sony went on to dominate the market for the next six years.

It is a timely reminder that nothing stays the same for long in this fast and furious industry. Sony has now dropped to third place in console sales with its PlayStation 3 and Nintendo has recovered after the disastrous Game Cube console to take poll position with Wii.

The Japanese company has always had a seat at the top table of gaming because of its dominance of the hand-held market, most recently with its DS range. The 50 million sales of Wii have also made it king of the consoles.

Microsoft, which has the second biggest selling console with Xbox 360, will see its motion sensor interface as a way to close the gap on Wii. If it can deliver on its potential, few would argue with its prospects.

Coupled with the clear lead Microsoft has established with an online gaming community and its famously deep pockets, the number one software firm in the world will be looking to take a similar position in gaming.

It is a steep mountain to climb though. Perhaps the biggest challenge will be developing games for the new hardware that have Nintendo’s deftness of touch to appeal to the casual gamers, as opposed to the hardcore action games that have been the foundation for Xbox popularity among more serious gamers.