The Microsoft project known as Project Draco is actually a new title in development for the Xbox 360 and PC called Crimson Dragon. Crimson Dragon is the spiritual successor to Panzer Dragoon and is being headed up by Panzer Dragoon creator Yukio Futatsugi.
The title is being developed as a Kinect title where you will use the right hand to lock onto targets and left hand to fire, and if you wave both hands you launch a special attack. What we don’t know is when it will be released, other than it will be coming out in the near future with more exact information to be released at E3 by Microsoft.
Early word is that this is one game to keep your eye on, as it should be good. No release timetable has been announced yet.