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kitler53 said:

so natal is the eyetoy with software to interpet the data?

but anywho...

1. according to Peter M. Milo doesn't reconize what you are saying - it only reconizes tone.  it was in his explanation of the "tricks" milo was using to create the experience shown at E3.  I follow natal pretty close cause i find it interesting and i haven't seen even a faint suggestion that natal has the software support for full voice reconition.  if you have prove otherwise i would greatly apprecite seeing that.

2. (...and more importantly.)  it's not like MS's software support is writing games for third party developers.  Natal does a lot of interpitation, true, but the output from that interpitation is the skeletal system and the game developers still have to interpit that data in terms of how it controls their games. 

let me put it this way, Nintendo (like MS) has all sorts of software support to help developers interpit what the controller is doing.  The big difference (to me at least) is the wiimote/wand are going to be giving detailed information on 1 point; x/y/z location, acceleration, ect. Natal on the other hand is going to be giving the same information for something like 48 points if i remember correctly.  so tell me this,...how is that going to be any more useable to the developer?

...if the developer is going to make a "breakout" game where the full avatar is represented 1:1 on screen than yeah, that's pretty easy to put on screen.  but any game that is looking for more of a guesture based motion control things are more than likely going to be just like they are on the wii - laggy, unresponsive, ect.

It uses tone to determine the emotional level of the spoken words.  Molyneaux said they are using a token/dictionary for word recognition.