While the buzz from Microsoft these days concentrate on Bing, their new "not a search engine but a decision engine" service, I think the real breakthrough technology people should be looking and talking about is the new project named Natal for XBOX 360.
It's a all new ball game in the human computer interaction, where one does not need a controller to play and interact with the XBOX 360. Just be there and play. Watch the demo:
Natal is the portuguese word for Christmas, does it means it will be available in Christmas? If so, Santa, I know is a bit early to ask for presents, but unless otherwise, this is what I want.
Update 4 hours later: Johnny Chung Lee has some technical insights of this project in his blog.