Microsoft is filing patent rights to a technology of what could be a really cool invention, called "Muscle Computer Interface" which works on electromyography (EMG) it measures electrical potentials generated by the activity of muscle cells. The intention here is to acquire human input that may not necessarily require direct manipulation of a physical implement.
The video above includes a demonstration of how to use muscle movement to play Guitar Hero, air-guitar style, so Microsoft would very well use this technology to Xbox 360 games and moving beyond games this invention could prove handy in situations where you could control devices with your muscle interaction using pressure points on your fingers, like snapping your fingers to change the track on your portable mp3 player, changing channels, volume etc. on your television by a touch to your fingers, hands-free input mechanisms that can helpful in areas sensitive to contamination, for example surgery rooms.
You can read more about this here, a white paper on Microsoft research website, an Indian member is also on board to this team Ravin Balakrishnan