The news comes from the 8bitjoystick website, which reports:

“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.”

Apparently, Microsoft has a solid case against any Nintendo attempt to sue the Redmond company for patent infringement. Rumor has it that Microsoft licensed patents from Gyration, the same company from which Nintendo got the rights to develop the Wiimote.

This is the second story on the presumed Xbox 360 remote. After MTV’s initial reports that Microsoft has been working on such a device since last August.