Didn't Shane Kim already say that Natal will be like the launch of a new console. Most likely going to be the 360 guts with a built in HD (probably a flash drive), slim case, and motion camera.
Current 360 owners should just be able to get the Natal camera to upgrade to the current configuration. This seems like a good idea since they can extend the life of the 360. The Wii pretty much proves that graphics aren't important to most consumers. It will also be a plus since current developers won't need to develop new engines or spend the extra money to create the hi-res assets. (Ubisoft says next gen games are going to cost $60m).
Hopefully this is how it pans out.








