Phil Spencer gives a big nod of approval to Kinect Creative Director Kudo Tsunoda's upcoming project, which will be unveiled later this year.

Gamespot reports that Phil Spencer recently Tweeted that Kinect director Kudo Tsunoda is working hard on a mysterious project that he's proud about. Based on Tsunoda's history with redefining motion-based gaming via the Kinect, this could be Microsoft's long rumored entry into the virtual reality headset race. There are many possibilities that could be done by intertwining a VR headset with the Kinect 2.0's capabilities and speech-recognition system -- Gamespot mentions the possibility of something smaller, such as a Google Glass-like device.

We're pretty sure we'll see this project unveiled at E3 2015, especially since Xbox's E3 2014 presence was completely focused on its gaming library. It's safe to say Xbox will be bringing out both tech and game innovation this time around.