The Xbox 360 camera was unveiled at last year's E3 alongside the system and it was shown that the camera would be used for a variety of purposes. Rumors are now spreading that Microsoft has shown the camera off to developers recently in hopes that they will use it to develop games via an Eye-Toy type experience or something even more advanced. If this holds true we could be using the camera in games within the coming few months!

The only purpose thus far that has been shown to developers it seems to show off the technology has been that of a video chat over Xbox Live. This is actually a cool idea because if you could use the camera in conjunction with a live arcade game, something simple like Chess, it could make for a relaxing social experience for the casual fan over Xbox Live.

The new camera is expected to be availble within the next few months.

Regardless one thing is for sure, the camera is on its way very soon and I would not be surprised if Microsoft shows off a few games to go along with it at this year's E3. Say cheese and get ready for the Xbox 360 News Camera!