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NJ5 said:
Jereel Hunter said:

What? Sounds like someone hasn't read the article, or any of the articles of people who have had hands on demos of the technology. It's very good at discerning finite movement, just the software to take advantage of the input is in its infancy.

Actually those articles are just speculating, as it has been confirmed that most of the processing happens in the Natal peripheral, and the games will just have to receive the data on the body's position.

 

There is software that is running inside Natal.  That is what they are referring to.