Haaretz was the first source to report that Microsoft is about to put the first Israeli exit in 2009 on the map. According to the report, Microsoft is in talks to acquire 3DV Systems for $35 million. The Israeli start up has reportedly raised $38.6 million to date, which means that shareholders will be losing some money on this deal including: Elron, Pitango and Kleiner Perkins Caufield & Byers, and RDC Rafael Development Corporation.
3DV Systems has developed the Z-Cam (formerly Z-Sense), a sensor-packed camera, which lets gamers control the game through body gestures alone, eliminating the need for any kind of joystick. Microsoft is hoping to gain an edge on Nintendo Wii, by integrating 3DV’s technology into the Xbox 360.
Other applications to the Z-Cam include video conferencing technology, but its unclear what Microsoft is planning on leveraging that front.