Gamasutra, the game is a "first person melee game" that uses Kinect.
The source claims that development of the game, once handled at Crytek's Budapest studio, has been moved to their Frankfurt studio due to a "sudden decision" by their publisher, Microsoft Game Studios. Crytek Budapest faces cuts and a new focus on tablet games.
Crytek are currently preparing to present the game at E3 next month following 2 years of development. You can see the trailer unveiled at last years E3 below.