Joystiq are reporting that Sega will be releasing Sonic Free Riders as an Xbox Live Arcade game for Natal. Naturally with a Natal game you will be controlling your on screen character via your body movements. This is appears to be a cross between the almost unplayable EyeToy: Anti Grav game for the PS2 and the hoverboard racing game Sonic Riders.
If this is real then we may see a reveal at E3 but for now this is filed under rumour.
Source: Joystiq