The "Newton" controller's code name is after the physicist Sir Isaac Newton. The internal Microsoft engineering code name is for this controller is "Newton" as in Newtonian Physics relating to gravity, inertia and acceleration. This is not to be confused with the defunct Apple Newton PDA, this is just and internal name, when this controller comes to market it will have a retail name.

The hardware is still being worked on and it might be a couple months before we see leaked shots of prototypes when they start to mass manufacture it but I am sure that there is an early software developer kit and prototype out there.

Microsoft is rumored to have licensed patents from Gyration and are using them to develop their motion sensing Wiimote controller. Legally Microsoft is not ripping off Nintendo but rather licensing the technology from the same place that Nintendo got it.