It is true, according to a recent article in Business Week:
Microsoft Moves onto Nintendo's Motion Turf: "The software giant's Xbox 360 gaming console will have a camera system that lets users bring body movements and voice commands into play"
Information about the camera from the 3DV website:
"The new"ZCamTM (previously Z-Sense), 3DV's most recently completed prototype camera, is based on DeepCTM and is the company's smallest and most cost-effective 3D camera. At the size of a standard webcam and at affordable cost, it provides very accurate depth information at high speed (60 frames per second) and high depth resolution (1-2 cm). At the same time, it provides synchronized and synthesized quality color (RGB) video (at 1.3 M-Pixel). With these specifications, the new ZCamTM (previously Z-Sense) is ideal for PC-based gaming and for background replacement in web-conferencing. Game developers, web-conferencing service providers and gaming enthusiasts interested in the new ZCamTM (previously Z-Sense) are invited to contact us."
Video of 3DV Systems at CES 2008