If Sony can create an award-winning and popular Karaoke franchise such as Singstar then you can bet your bottom dollar that Microsoft will at least try to create a competing product.

According to reports from Neogaf , it seems that Microsoft may not be too far away from an announcement of a new Karaoke title and if the leaked details are correct, then its features will certainly make the casual singing brigade sit up and take notice.

The rather seductive sounding 'Lips' will apparently come packaged with two wireless microphones and will include 30 tracks and an online music store. There's even the report that users will be be able to sing their own tracks, a feature that is not available in Singstar for the PS3.

The game will follow a similar vein to Singstar with players being awarded points for pitch, tracking, rhythm and tuning.

The wireless microphones are also said to be equipped with motion control that will allow players to "dance, move or swing to score points," and will also be equipped with lights that flash to the rhythm of your voice.

It sounds like it could be a great karaoke game, but there is one area where Sony will have the edge over its opponent - the track listing. Sony BMG has immediate access to the long list of tracks from its music labels and we'd guess it won't be too keen on giving Microsoft access to it. Still, there's plenty of great songs out there so it's going to be interesting to see what initial launch tracks Microsoft will come up with.

It's likely that 'Lips' will be either confirmed or denied at E3 later this month.