Wow.  Peter Jackson and Microsoft have signed together to form Wingnut Interactive, a production studio for Peter to create stories and movies for the Xbox 360 platform (and perhaps other PC platforms?) that would provide interactivity with his stories and movies. 

As Preston White says in his article about the venture, "Gaming - and especially online gaming - is a new way of storytelling and possibly represents the first real innovation in the craft since the invention of fire".

It does sound good.  It might be a kindler, gentler Mordor, Preston...