More details have been unveiled for upcoming XBLA game Project Draco (working title) and it turns out it’s not a Harry Potter spin-off chronicling the adventures of our favorite Slytherin. Instead the Kinect controlled XBLA game was demonstrated at the TGS by creator Yukio Futatsugi to be an on-rails shooter powered by Unreal Engine. Set in a future where humans can ride dragons, players use gestures to fire off attacks such as the one handed “Fire Breath” and the stronger two handed attack “Eclipse Ray”. On completion of each stage players can level up and earn new skills. There are 150 types of skills which will increase your power and skill combination is the key to success. While the game does not user the Panzer Dragoon license this does look very much like the Kinect version of Sega’s classic.

Thanks again to @lifelower for this tip. Project Draco is not expected until 2012 but you can check out the screenshots we posted earlier this week.