Natal will launch in the US this October with a price tag of $149.

That’s according to a trusted source, who told us that the motion sensing camera will also be bundled with the Xbox 360 Arcade console for $299.

We were informed that prices outside of the US would be determined based on a number of factors, including exchange rates. Based on current rates, the standalone unit would retail for £103 / €121, and the console and Natal bundle for £207 / €243.

The figure for the standalone unit is significantly higher than a previous sub-£50 estimate, but less than pricing recently suggested by European retailers. It’s also more expensive than Sony’s Natal rival Move, which will be available later this year with a game for less than $100.

Our source said that the device has been pencilled in for an October 26 worldwide launch, although we were advised that the date could yet shift by a few weeks either way.

We were also told Microsoft’s camera definitely won’t be called Natal and that its proper title will be revealed at E3 next month. It will also be heavily targeted at causal players and families.

“Microsoft expects to sell millions and millions of Natal units in its first year on the market so you can expect the software launch line-up to target non-traditional gamers,” our source said. “A major marketing campaign will also play a key role in attracting and educating the expanded audience about Xbox 360’s controller-free revolution.”

When contacted about this report, Microsoft told us that it "does not comment on rumour or speculation”.

So what do you guys think?