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mike_intellivision said:
To me, this is the key phrase:

Microsoft had EA's Burnout Paradise programed to work with Natal.

This technology sounds wonderful ... but who will be doing all the software translation? Someone will have to pay for the patches.

Mike from Morgantown

No one has said that games were going to be backwards compatible.  This was just an easy example to show people.

Of course it can read individual fingers and of course it can detect multiple people.  There is an onboard chip that handles all depth processing so it should not affect performance with more people.