I suggest you guys watch the FULL vid.
Natal is controller-free, using what looks like a TV-mounted camera/microphone bar to sense motion, sound, and even 3D movement.
Project Natal is going to work with all current, past, and future versions of the Xbox 360, according to the press event. While the wide-open excitement of the initiative was refreshing, the fact that Natal has no official name, price, or release date was disappointing. In fact, it was called a concept for the future.
More info @ cnet
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