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MS. "“The next step in interactive entertainment is to make the controller disappear,” said Steven Spielberg, visionary director and producer. “With ‘Project Natal,’ we’ll see games that bring everyone together through technology that actually recognizes us.”"

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Rare. "We’re learning a lot of stuff about Natal every day, and there are many types of experiences that can be created with that technology. You just need to be able to rethink how you approach those particular design problems," said Andreas.

"To take a shooter, as an example, you would just have to rethink the way a shooter works," explained Andreas. "Shooters work the way they do at the moment because they’re based around the original Xbox 360 controller. You throw that away, you throw that interface away and here’s a completely different interface – now how do we create a shooter for this? Does it mean that you have to run, strafe, turn, throw grenades in the way that you’re used to? Maybe not. Maybe there’s another way of doing shooters."

He added: "You’re probably not going to get exactly the same experience that you do with a conventional controller, but that could also be a very good thing.
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xbox.com
"No Strings (or Controllers) Attached.

Introducing Project Natal, a revolutionary new way to play: no controller required. "
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Wiki. "Project Natal (pronounced "na-tal" (IPA: [naˈtal])) is the code name for a "controller-free gaming and entertainment experience" by Microsoft for the Xbox 360 video game platform. Based on an add-on peripheral for the Xbox 360 console, Project Natal enables users to control and interact with the Xbox 360 without the need to touch a game controller through a natural user interface using gestures, spoken commands,[1] or presented objects and images."




So yeah.. they're pretty much saying that this is a recognition controller. Anything you want to do, do it with body motion, face regognition, voice command and controller free.