Microsoft on Thursday formally launched Xbox Kinect, a controller system that allows users to interact hands free with compatible Xbox 360 games.

Xbox Kinect

The company is offering Kinect bundled with a 250GB Xbox 360 for $399 while the 4GB version is selling for $299. The Kinect sensor bar is also available as a standalone product for $149.

The Kinect bar features a camera, audio sensors, and motion-sensing technology that tracks 48 points of movement on the human body.

That means players can control on-screen action simply through physical gestures and verbal commands. The sensor bar is designed to plug directly into the Xbox 360 console.

Analysts expect Kinect to be one of the hottest selling products during the upcoming holiday season.

IDC, in a study released Monday, predicted Microsoft will sell between 2.5 million and 3 million Kinect sensors for Xbox 360 in the fourth quarter. The research firm also said it expects Sony to sell between 2 million and 2.25 million PlayStation move systems.

Microsoft recently unveiled a slew of Kinect compatible games. The most high-profile title on the list is "Harry Potter and the Deathly Hallows—Part 1 The Videogame." From Electronic Arts, the $49.99 game gives players the chance to assume the character of the famous boy wizard and walk the halls of Hogwarts.

Launching this month are Kinectimals (Frontier Studios), which lets players interact with on screen zoo animals, Your Shape: Fitness Evolved (Ubisoft), which provides exercise routines with the help of a virtual, on-screen trainer, and Kinect Sports (Rare), which lets users play simulated soccer, bowling, volleyball, and other games.

Kinect Joy Ride (Big Park) is billed as the world's first hands-free racing game, and Dance Central (MTV Games) allows players to groove to tunes by artists like Lady Gaga, No Doubt, M.I.A., and more.