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LordChris915 said:

The way I see it, Natal's advantage is purely software based, its highly likely that as soon as Natal is released, Sony will be able to emulate alot of the tech employed by it, add in the PS3's up and coming 3D capabilities, we could get some really interesting games.

To say that Natal has any hardware advantage would be naive, looking at the Natal camera, there seems to be little or no difference between it and the PSeye, Sony have already said that they are capable of emulating this kind of thing though to a slightly lesser degree. http://www.product-reviews.net/2009/06/07/ps3s-playstation-eye-vs-xbox-360s-natal/

Its all going to be about precisuion vs depth of field, my criticism would be, how many people have enough space to make use of field depth?

Microsoft is a software company, so it's no wonder that Sony this generation has been forced to respond defensively and emulate everything Microsoft has done.  The time that is lost from developing features that your competitor already has puts you behind the curve, and once again MS has taken initiative with the press, dev kits, and release date.  Always responding to your competitor is a bad position to be in (i.e., PSN, Zune, WinMo).  It doesn't really matter if it is different than their competitor as long as the perception is there. 

If Natal enables gesture recognition and turns screens into multitouch surfaces, that's actually pretty useful as I am currently using a multitouch laptop.  Now that I am thinking about it, I'm  inclined to believe this is probably a method for MS to have the public get acquainted with utilizing next gen input recognition that most devices are moving towards anyways (iphones, MS surface/multitouch panels/tablets).